The U.S. Supreme Court has agreed to hear Nvidia’s plea to throw out a securities fraud lawsuit that accuses the company of deceiving investors about its sales to the cryptocurrency industry. The appeal comes after a lower court’s ruling to revive a class-action lawsuit against Nvidia. The lawsuit claims that Nvidia and its CEO, Jensen Huang, minimized the impact of crypto-related sales on its revenue between 2017 and 2018. During this time, Nvidia’s chips became popular for crypto mining. Initially rejected by a district judge, the 9th Circuit Court of Appeals decided to reinstate the case, citing sufficient evidence of intentionally deceptive statements. Nvidia argues that this decision could open the door to frivolous lawsuits. A positive outcome for Nvidia could set a precedent for other companies to have similar lawsuits dismissed early on. The focus of this case revolves around the protections outlined in the 1995 Private Securities Litigation Reform Act.
