Nvidia tells the US Supreme Court it should dismiss a lawsuit accusing the company of misleading investors over crypto
Lawsuits are probably like water off a very fat duck's back to Nvidia, but that doesn't mean it'll just roll over for them. In fact, it looks like the chip giant would rather have them dismissed before they even enter litigation.
The US Supreme Court has just heard Nvidia's appeal against a lower court's decision to move forward with a class action lawsuit from 2018 (via Reuters). This lawsuit claims that Nvidia misled its investors by downplaying how much of its sales and revenue depended on the crypto market, thereby breaking the 1934 Securities Exchange Act.
We've already seen Nvidia pay out for not disclosing such crypto dependency. In 2022, Nvidia settled for $5.5 million with the Securities and Exchange Commission for not adequately disclosing the extent to which crypto mining was responsible for its GPU sales and revenue.
Which, one might remember, was an extent great enough for scalpers to go crazy for the RTX 30-series and for Nvidia to push out «Lite Hash Rate» (LHR) versions of its graphics cards.
The 2018 lawsuit that's resurfaced is separate from this, though. In fact, it has a pretty turbulent history itself, having been previously dismissed in 2021 but then resuscitated by the 9th Circuit Court of Appeals. Now, Nvidia's attempting to bat it down again by claiming it's not up to snuff.
The current argument in the Supreme Court surrounds whether this 2018 lawsuit is strong enough to be brought forward given the rules outlined in the 1995 Private Securities Litigation Reform Act, an act that attempts to prevent frivolous litigation.
According to Reuters, in response to Nvidia's argument, Liberal Justice Ketanji Brown Jackson stated: «I guess my concern is that you appear to be requiring for plaintiffs to actually have the evidence in order to plead their case,» while such evidence is often usually not given until a later stage.
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