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The U.S. Supreme Court will hear arguments in Nvidia’s bid to appeal a securities fraud lawsuit today, just days after it heard from Meta.
Nvidia is being accused in a securities class action of misleading investors about how much of its sales depended on the cryptocurrency market.
It’s a 2018 suit which is being led by the Sweden-based investment management firm E. Ohman J:or Fonder AB.
The plaintiffs accused the US-based chipmaker of violating the 1934 federal law known as the Securities Exchange Act by making statements in 2017 and 2018 that falsely downplayed how much of its revenue growth came from cryptocurrency purchases.
Nvidia argued in a filing that the plaintiffs had failed to adequately show that the disputed corporate statements were false or that the company had intentionally or recklessly misled investors.
In a counter, the plaintiffs said the lawsuit contained strong enough allegations which they say were gleaned from former employees, market analysis and expert opinion.
Meta and Nvidia bring bids to the US Supreme Court
In 2022, Nvidia didn’t admit or deny the findings of federal regulators but did agree to pay $5.5 million to authorities in the US to settle charges.
Today, the justices will hear arguments from the technology company’s appeal of a lower court’s decision allowing the 2018 class action to proceed.
Reuters says the “issue is whether the plaintiffs cleared the heightened legal bar for bringing private securities fraud suits as set by Congress in a 1995 federal law called the Private Securities Litigation Reform Act that aimed to screen out frivolous lawsuits.”
On November 6, the Supreme Court heard Meta’s Facebook’s bid to dismiss a suit which accused the company of misleading investors.
The plaintiffs include a group of Facebook investors led by Amalgamated Bank who say the company withheld information from investors about a 2015 data breach involving Cambridge Analytica. The ruling is expected by the end of June.
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