Supreme Court Hears Nvidia, Facebook Fraud Cases

Nvidia and Facebook are currently facing skepticism from the U.S. Supreme Court regarding their attempts to dismiss class action securities fraud lawsuits. During arguments, justices across the ideological spectrum questioned whether Nvidia's CEO Jensen Huang misled investors about the company's reliance on cryptocurrency-related sales, particularly during a stock price drop following a crypto market crash. Nvidia's lawyers argued that the plaintiffs have not met the pleading standards outlined in the Private Securities Litigation Reform Act, but justices expressed concerns about the company's request, suggesting it may not present a clear legal question for resolution. The outcome of these cases could significantly affect the landscape for future securities fraud litigants. Justices including Elena Kagan and Sonia Sotomayor conveyed doubts about Nvidia's arguments, indicating a possible reluctance to rule in favor of the tech giant.