Unexpectedly, the US Supreme Court is now considering hearing Nvidia’s appeal to dismiss a fraud case.
The appeal alleges that in 2017 and 2018, Nvidia misled investors about how its crypto-related sales impacted revenue growth.
The legal battle began in 2018 when the demand for Nvidia chips for crypto mining surged, as they are known to handle complex mathematical calculations required for mining cryptocurrencies like Bitcoin. Subsequently, a group of shareholders in California accused Nvidia and its CEO Jensen Huang of violating securities laws by downplaying the role of crypto-related sales in the revenue surge during that period.
Initially dismissed by a district court last year seeking unspecified damages, the class-action lawsuit was reinstated by the Ninth Circuit Court of Appeals in the US. It turns out that the plaintiffs claim that Huang made “false or misleading statements knowingly or recklessly” according to the appellate court.
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Undeterred by this ruling, Nvidia has turned to the Supreme Court arguing that such action could open the doors to “abuse and speculative litigation.” And now unexpectedly, America’s highest court
will hear Nvidia’s plea
and potentially dismiss the case.
Despite this ongoing legal issue, on June 18, Nvidia’s shares surged by 3.5%, bringing the market capitalization to over $3.34 trillion. This exceptional performance placed it above industrial giants Microsoft and Apple as the most valuable company in the world, highlighting investors’ belief in Nvidia’s technological edge and future prospects.
