NVIDIA’s Crypto-Mining Lawsuit Reaches US Supreme Court
Solomon Thompson / 6 months ago
The US Supreme Court will hear NVIDIA’s case involving an investor lawsuit that accuses the company of misleading information during the crypto-mining boom.
Misleading Financial Data
In 2019, a group of investors filed a class-action lawsuit against NVIDIA. They claim the company downplayed the significance of revenue from the crypto-mining surge, attributing the increase in GPU sales to gaming demand instead. This alleged misinformation led to substantial losses for investors due to inflated stock prices.
Court’s Decision to Hear the Case
According to Reuters (thanks Wccftech), the Supreme Court agreed to hear NVIDIA’s request to dismiss the case. The lawsuit, led by Stockholm-based E. Ohman J: or Fonder AB, seeks unspecified compensation for the investors’ losses.
Initially dismissed by the U.S. District Court in 2021, the case was revived in August 2023 by the 9th U.S. Circuit Court of Appeals. The lawsuit suggests NVIDIA’s financial data framing could cause significant legal issues, especially now that NVIDIA is a major player alongside Apple and Microsoft in market capitalization.
With the AI industry’s rise, NVIDIA’s current prominence contrasts sharply with its status during the lawsuit’s filing. The case’s outcome could affect the firm’s reputation among investors.
