Supreme Court Sidesteps on Nvidia Securities Fraud Case

The U.S. Supreme Court recently decided to not make a ruling on a securities fraud lawsuit against Nvidia involving misleading investor information about its reliance on cryptocurrency sales. The case continues as the lower court's decision allows shareholders, led by E. Ohman J:or Fonder AB, to proceed.

The U.S. Supreme Court has chosen to sidestep a decision on a securities fraud lawsuit against Nvidia, allowing it to proceed in lower courts. Shareholders accuse Nvidia of misleading investors by understating the significance of the cryptocurrency market on its revenue.

This decision leaves intact a lower court ruling allowing shareholders, led by Swedish investment firm E. Ohman J:or Fonder AB, to move forward with claims that Nvidia violated securities law. Nvidia's appeal was dismissed without explanation by the justices.

Allegations assert Nvidia concealed the impact of cryptocurrency on its business, allegedly resulting in a stock price drop in 2018. Despite having settled related charges in 2022 with U.S. authorities for $5.5 million, Nvidia argues the claims lack adequate evidence of falsifications or reckless misconduct.

(With inputs from agencies.)