Supreme Court will review Nvidia’s request to reject lawsuit

The US Supreme Court agreed this Monday to consider high-performance processor manufacturer Nvidia’s request to reject the lawsuit of a group of investors who accuse the company of providing misleading information about its dependence on the cryptocurrency market.

The lawsuit accuses the graphics card maker, which became a major hardware supplier for cryptocurrency mining and now artificial intelligenceto hide in 2017 and 2018 that the company’s revenue growth came from the volatile cryptocurrency market and not the video game market.

By hiding that information, the company minimized to investors the real risk it faced.

In 2022, Nvidia was fined $5.5 million by the US Securities and Exchange Commission for hiding in its 2018 financial results how many graphics cards it sold to crypto miners.

Although the investors’ lawsuit was initially rejected in 2021, a California appeals court later modified this decision and accepted that Plaintiffs had made compelling arguments that Nvidia CEO Jensen Huang produced misleading information about operations.

Nvidia asked the Supreme Court to accept its appeal, arguing that if the case proceeded the “abusive” lawsuit would be allowed.