Supreme Court Dismisses Nvidia Appeal in Lawsuit

The US Supreme Court has allowed a class-action lawsuit against Nvidia to proceed, dismissing the company's appeal to halt the litigation. The lawsuit accuses Nvidia of misleading shareholders about its reliance on revenue from cryptocurrency mining, which significantly impacted its financial performance when crypto markets declined. The court's decision to drop the case as 'improvidently granted' leaves in place a lower court decision that permits the lawsuit to move forward. This marks the second time recently that the Supreme Court has dismissed a securities fraud appeal, following a similar decision regarding Meta Platforms. The Biden administration supported the investors' position at the Supreme Court, and the decision coincides with Nvidia facing an investigation in China over potential antitrust violations.