Thu Nov 14 03:28:47 UTC 2024: ## Supreme Court Leans Towards Allowing Class-Action Lawsuit Against Nvidia Over Cryptocurrency Dependence
**WASHINGTON -** The Supreme Court on Wednesday signaled its likely intention to keep alive a class-action lawsuit accusing Nvidia of misleading investors about its reliance on cryptocurrency mining for chip sales.
The court heard arguments in Nvidia’s appeal of a lower-court ruling allowing a 2018 suit, led by a Swedish investment management firm, to proceed. The lawsuit followed a dip in cryptocurrency profitability, which caused Nvidia’s stock price to plummet by 28% after revenue projections were missed.
While Nvidia settled charges with the Securities and Exchange Commission in 2022, admitting no wrongdoing, the company is now arguing that the investors’ lawsuit should be dismissed due to a 1995 law aimed at preventing frivolous complaints.
Despite Nvidia’s arguments, a majority of the Supreme Court justices, including both liberal and conservative members, appeared skeptical. Justice Elena Kagan was quoted as saying, “It’s less and less clear why we took this case and why you should win it.”
The Biden administration is supporting the investors in the case. A decision is expected by early summer.
The outcome of this case could have significant implications for other tech companies facing similar class-action lawsuits. It also comes at a time when Nvidia, a leader in artificial intelligence, is experiencing record growth due to increased demand for its specialized chips used in AI applications.
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