The US global chip maker lost its bid to stay a 2018 class action lawsuit against it after the high court dismissed its appeal. Nvidia has lost its legal battle to dismiss a cryptocurrency fraud lawsuit filed by shareholders after the US Supreme Court ruled that it will no longer entertain the chip maker’s appeal.
Appeal Denied
The US Supreme Court has announced that it will no longer entertain an appeal by US chip maker Nvidia over its fraud case.
As a result, the Supreme Court upheld the lower court’s earlier decision allowing the 2018 class action to proceed.
Nvidia urged the high court to listen to its side and avoid the cryptocurrency fraud case filed against it in 2018.
Reports said that the chipmaker’s shareholders sued the company for misleading investors, saying that Nvidia was not aware of how much its sales depended on the volatility of the crypto market.
The Case for Progress
Reports said the lower court’s ruling would stand after the US Supreme Court rejected Nvidia’s request, meaning the chipmaker would have to face a lawsuit.
The Supreme Court of the United States said that the justices of the supreme court heard the points related to this case. The court’s magistrates decided not to rule on the underlying legal dispute involving the chip maker.
The high court dismissed Nvidia’s appeal against the lower court’s decision, which led to the 2018 lawsuits moving forward; a situation that Nvidia is trying to avoid but with the court decision, it seems that the US chip company has no choice.
The supreme court revealed that during the trial of this case, several justices were skeptical about the need for the United States Supreme Court to intervene in this case, pondering whether there is a clear legal issue that the judges should decide, such as arguing only the facts.
The jury said they were not in a position to resolve Nvidia’s case because of technical difficulties.
He is accused of Fraud
The American chip manufacturer became famous in 2018 for crypto mining. That same year, Nvidia shareholders charged the company with violating the Securities Exchange Act of 1934, saying the chipmaker falsely deferred part of its revenue growth attributable to crypto-related activities in 2017 and 2018.
Shareholders argue that by omitting this important information, Nvidia misled investors and analysts who are evaluating the effects of crypto mining on Nvidia’s business.
In 2021, a US federal judge dismissed the case in favor of Nvidia; however, the 9th US Circuit Court of Appeals overturned the decision and reinstated the fraud charges.
Featured image from Morningstar, chart from TradingView
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