Supreme Court Skirts Decision in Nvidia Crypto Case

The U.S. Supreme Court avoided a decision on whether shareholders can pursue a securities fraud lawsuit against Nvidia over claims of misleading statements about its cryptocurrency market dependence. The court left a lower court ruling intact, allowing the class action led by Swedish firm E. Ohman J:or Fonder AB to proceed.

The U.S. Supreme Court chose not to make a decision on Wednesday concerning a securities fraud lawsuit against AI chipmaker Nvidia. The lawsuit alleged that Nvidia misled investors about its reliance on the cryptocurrency market, a claim stemming from a 2018 class action initiated by Stockholm-based E. Ohman J:or Fonder AB.

The Supreme Court, deciding the case should not have been taken up, left in place a lower court's ruling allowing the case to move forward. This decision was articulated in a single-line order, offering no detailed explanation. The justices expressed hesitance during the arguments, questioning the clarity of the legal issue at hand.

The core question was whether the plaintiffs met the strict requirements for private securities fraud suits under the 1995 Private Securities Litigation Reform Act. The accusations against Nvidia and CEO Jensen Huang centered on allegedly minimizing how much revenue growth was tied to the volatile cryptocurrency market.

(With inputs from agencies.)