The lawsuit, brought by shareholders in California, seeks unspecified monetary damages. The plaintiffs claimed that Nvidia made false and misleading statements to the market, stating that the company monitors the cryptocurrency markets in real-time and rapidly adjusts its business.
Nvidia’s chips have gained popularity for their use in crypto mining. Shareholders alleged that these omissions misled investors and analysts seeking to understand the impact of crypto mining on Nvidia’s business.
The lawsuit was initially dismissed in 2021, but in a 2-1 ruling, a San Francisco-based Ninth U.S. Circuit Court of Appeals revived it.
The plaintiffs’ allegations that Nvidia’s CEO knowingly or recklessly made false or misleading statements were deemed sufficient by the Ninth Circuit, allowing their case to proceed. Nvidia urged the justices to take up its appeal, arguing that the Ninth Circuit’s ruling would open the door to “abusive and speculative litigation.”
In 2022, Nvidia agreed to settle charges with U.S. authorities by paying $5.5 million.
The charges alleged that the company did not adequately disclose the effects of crypto mining on its gaming business.