Supreme Court Dismisses Nvidia's Bid To Avoid Securities Fraud Suit

The US Supreme Court has dismissed an appeal by artificial intelligence chipmaker Nvidia, which sought to avoid a securities fraud lawsuit filed by shareholders.

The Supreme Court rejected Nvidia's appeal of a lower court ruling that allowed the 2018 class action to proceed. I Photo: NVIDIA

The plaintiffs accused the company of misleading investors about how much of its sales relied on the volatile cryptocurrency market, John Kruzel reported for Reuters.

The justices, who heard arguments on Nov. 13, declined to issue a decision on the legal dispute. Instead, they rejected Nvidia's appeal of a lower court ruling that allowed the 2018 class action to proceed.

The lawsuit is led by Stockholm-based investment management firm E. Ohman J:or Fonder AB.

The Supreme Court left the lower court's decision intact, issuing a one-line order with no explanation.

During the November hearing, several justices expressed reservations about intervening, noting that the case seemed to center on factual disputes rather than clear legal issues. The case’s technical complexities further reinforced their hesitance to weigh in.