NVIDIA’s “Crypto-Mining” Lawsuit Takes A New Turn, US Supreme Court To Hear The Firm’s Plea
The US Supreme Court is all set to hear NVIDIA on an investor lawsuit, where the firm is allegedly blamed for misleading information regarding their business during the crypto-mining era.
NVIDIA Is Set To Face off Investors Who Claim That The Firm Presented Misleading Financial Data, Which Led To Huge Losses
For those who are unaware, back in 2019, a group of investors filed a class-action lawsuit against NVIDIA, claiming that the firm was responsible for downplaying the importance of the revenue stream from the crypto-mining boom. Since GPU sales saw a massive surge at that time, NVIDIA associated it with the demand from the gaming industry; however, that wasn't the case at all. We all know how devastating the crypto-mining hype had on the GPU supply to consumers, but apparently, Team Green hid this fact from investors, which is why they now face legal trouble.
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Reuters claims the US Supreme Court has agreed to listen to NVIDIA on the lawsuit to end the matter. The lawsuit is led by the Stockholm, Sweden-based investment management firm E. Ohman J: or Fonder AB, and they demand an unspecified amount of compensation. They claim that with the misleading revenue figures, investors faced losses through NVIDIA's "inflated" stock share pricing.
Although the case was dismissed by the U.S. District Court in 2021, it came back to life in August 2023 through the 9th U.S. Circuit Court of Appeals. Well, given that the lawsuit claims that NVIDIA framed its financial data, it can prove to be massive legal trouble for the firm, which, in recent days, has managed to find a spot alongside Apple and Microsoft regarding market capitalization. With the AI hype in play, NVIDIA is now a much bigger firm than it was back in the time of the lawsuit filing, so one might say the case would tarnish the firm's reputation among the sight of investors.
It will be interesting to see how
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