Supreme Court Leaves Nvidia's Securities Fraud Appeal in Limbo

The U.S. Supreme Court dismissed Nvidia's appeal to evade a securities fraud lawsuit related to misleading investors about cryptocurrency revenue. The dismissal maintained a lower court's decision, leading the case to proceed. Shareholders accused Nvidia of downplaying its revenue from cryptomining during a volatile market.

The U.S. Supreme Court has dismissed an appeal by Nvidia, an artificial intelligence chipmaker, thereby allowing a securities fraud lawsuit to move forward. Shareholders allege that Nvidia misled investors about the extent of its sales dependency on the volatile cryptocurrency market. The justices had previously heard arguments in November but chose against rendering a decision, leaving the lower court's ruling intact.

Named by a Stockholm-based investment firm, the lawsuit accuses Nvidia and CEO Jensen Huang of downplaying their revenue growth from crypto-related activities in 2017 and 2018. Despite Nvidia's prior agreement to pay $5.5 million to settle related charges, the case remains a significant step in ongoing efforts for corporate accountability.

Speaking on behalf of shareholders, attorney Deepak Gupta termed the dismissal as a victory for corporate accountability. Nvidia, committed to defending its position, maintains the necessity of predictable legal standards to protect shareholders and support a robust economy. The Supreme Court's decision emphasizes the intricate balance between corporate communications and investor rights.

(With inputs from agencies.)