Nvidia, a big name in computer chips, just lost a major legal battle. A shareholder lawsuit accusing them of hiding how much money they made from cryptocurrency is moving forward.
The Supreme Court’s Decision
The Supreme Court refused to hear Nvidia’s appeal. This means a lower court’s decision to allow the 2018 lawsuit to proceed will stand. Nvidia had hoped the Supreme Court would overturn the lower court ruling and dismiss the case. The Supreme Court justices felt the case was too complex and technical for them to handle. They also questioned whether the case presented a significant legal issue needing their intervention.
The Original Lawsuit: Hiding Crypto Revenue?
The lawsuit claims Nvidia misled investors about how much of its success depended on the cryptocurrency boom. Shareholders argue that Nvidia downplayed the role of crypto mining in its revenue growth during 2017 and 2018, violating securities laws. They say this omission deceived investors who were trying to understand the impact of crypto on Nvidia’s business.
A Winding Legal Path
Initially, a federal judge dismissed the lawsuit. But an appeals court reversed that decision, bringing the case back to life. Now, with the Supreme Court’s refusal to intervene, Nvidia will have to face the lawsuit in court.
