The US Supreme Court dismissed Nvidia’s petition to halt a class-action lawsuit alleging the corporation misled investors regarding GPU sales for cryptocurrency mining. Shareholders initiated this lawsuit in 2018, claiming that Nvidia understated the revenue from sales to crypto miners, resulting in significant financial losses for investors during the cryptocurrency market’s collapse.
The Supreme Court dismissed Nvidia’s appeal in a brief order on December 11 without providing an explanation. This decision affirms a previous finding by the Ninth Circuit Court of Appeals, which reinstated the complaint after it had been dismissed by a California district court in 2021.
The shareholders claim that Nvidia concealed more than $1 billion in revenue from GPU sales to cryptocurrency miners, resulting in a 30% reduction in the company’s stock price during a market collapse in 2018. The lawsuit also includes information from former Nvidia executives and external sources indicating that the business drastically underestimated its crypto-related income.
Nvidia has refuted the allegations, citing incorrect expert judgments. The corporation says it is willing to continue defending itself against these allegations. In 2022, Nvidia agreed to pay $5.5 million to settle separate accusations with the SEC, alleging that the firm failed to disclose the impact of cryptocurrency mining on its gaming business.
The Supreme Court’s decision not to intervene upholds the lower court’s ruling, enabling the class action lawsuit to proceed. This decision illustrates persistent worries about the cryptocurrency market’s transparency and accountability, as well as its impact on significant firms such as Nvidia.
