The U.S. Supreme Court is hearing a lawsuit about Nvidia’s cryptocurrency mining profits. Nvidia plans to aggressively assert its stance against the lower court’s decision.
According to industry insiders on the 18th, the U.S. Supreme Court accepted Nvidia’s appeal against the lower court’s verdict. The Supreme Court plans to review Nvidia’s arguments in its next session starting in October.
Previously, Nvidia investors filed a lawsuit against the company’s management in 2018. The investors claimed they were misled by sales growth due to demand for cryptocurrency-related products, and argued this was a violation of the 1934 Securities Exchange Act.
A U.S. district court dismissed this lawsuit in 2021, but the Ninth Circuit Court of Appeals in San Francisco decided to review the case. The appeals court found that Nvidia CEO Jensen Huang had made false or misleading statements and had done so intentionally or recklessly. Nvidia immediately appealed, arguing that this decision provided opportunities for indiscriminate and speculative lawsuits. It’s known that Nvidia agreed to pay $5.5 million in 2022 to resolve allegations that it did not adequately disclose the impact of cryptocurrency mining on its business.
As of the 17th, Nvidia’s stock price closed at $130.98. a 0.68% drop from the previous New York Stock Exchange trading day.
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