IT Home news on December 12th, the Supreme Court of the United States recently rejected Nvidia’s appeal in a class-action lawsuit brought by investors, which accused Nvidia of misleading shareholders on the impact of its sales in the cryptocurrency market. This means that the case will continue to be heard in lower courts.
The case stems from two investor lawsuits in 2018, alleging that Nvidia made irresponsible misrepresentations to investors regarding the correlation between revenue growth and the performance of Crypto Assets. Investors claim that Nvidia and its executives made materially false statements, downplaying the impact of the volatile Crypto Assets market on its revenue growth and exaggerating its ability to adapt to market changes. Previously, an appellate court has allowed at least part of the consolidated case to proceed.
It is worth noting that in 2022, Nvidia reached a settlement agreement with the U.S. Securities and Exchange Commission (SEC) for $5.5 million by concealing its involvement in the successful and turbulent cryptocurrency market. In the settlement agreement, Nvidia did not admit to any wrongdoing.
Along with its commercial success, Nvidia is facing increasing legal scrutiny, with the company facing antitrust investigations from Chinese regulators and the U.S. Department of Justice.
John Rizzo, a spokesperson for NVIDIA, said in a statement, ‘We had hoped the court would rule on the facts of the case and uphold the lower court’s decision to dismiss it, but we are fully prepared to continue to defend ourselves. Consistent and predictable standards in securities litigation are critical to protecting shareholders and ensuring a strong economy, and we will remain committed to supporting these standards.’
The Supreme Court’s ruling undoubtedly has a negative impact on Nvidia, forcing it to continue to face investors’ accusations in lower courts.
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Source: Sina
Author: IT Home
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