A US global chipmaker lost its bid to halt the 2018 shutdown Class action lawsuit against her after the Supreme Court rejected her appeal. Nvidia has lost its legal battle to dismiss a cryptocurrency fraud case brought by shareholders after the US Supreme Court ruled it would no longer accept the chipmaker’s appeal.
The appeal was rejected
The US Supreme Court announced that it would no longer consider the appeal filed by America Chip maker Nvidia Concerning the securities fraud lawsuit.
Thus, the Supreme Court maintained a lower court’s prior ruling allowing the 2018 class action to proceed.
Nvidia has pleaded with the Supreme Court to listen to its side and avoid the cryptocurrency fraud case brought against it in 2018.
It was reported that shareholders of the chip manufacturing company filed a lawsuit against the company over… Misleading investorsSaying that Nvidia has not been transparent about how much its sales depend on the volatility of the cryptocurrency market.
Lawsuit to proceed
Reports said the lower court’s decision will stand after the US Supreme Court did not approve Nvidia’s appeal, meaning the chip maker must face the lawsuit.
The US Supreme Court said that Supreme Court justices heard arguments related to the case. The court’s justices decided not to rule on the underlying legal dispute involving the chip manufacturer.
The Supreme Court rejected Nvidia’s appeal of the lower court’s ruling, leading to the 2018 charges moving forward; This is a scenario that Nvidia is trying to avoid, but with the court’s decision, it seems that the American chip company has no other choice.
The Supreme Court revealed that during the deliberations, many of the justices had reservations about the need for the US Supreme Court to intervene in this case, as they were considering whether there was a clear legal issue for the justices to decide, rather than just arguing about the facts.
The justices said they were not in an ideal position to resolve Nvidia’s case because of its technical complexities.
Accused of fraud
The American chip manufacturer became popular in 2018 in the field of cryptocurrency mining. In the same year, Nvidia shareholders accused the company of violating the Securities Act of 1934, alleging that the chipmaker wrongly understated the portion of its revenue growth that could be attributed to cryptocurrency-related activities in 2017 and 2018.
The shareholders argued that by omitting this key information, Nvidia deceived investors and analysts evaluating the impacts of cryptocurrency mining on Nvidia’s business.
In 2021, a US federal judge rejected the lawsuit in favor of Nvidia; However, the Ninth U.S. Circuit Court of Appeals I handed over the decision It revived fraud charges.
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