Current:Home > MarketsSupreme Court allows investors’ class action to proceed against microchip company Nvidia-DB Wealth Institute B2 Reviews & Ratings
Supreme Court allows investors’ class action to proceed against microchip company Nvidia
lotradecoin token airdrop campaigns View Date:2024-12-26 01:55:02
WASHINGTON (AP) — The Supreme Courtis allowing a class-action lawsuit that accuses Nvidiaof misleading investors about its past dependence on selling computer chips for the mining of volatile cryptocurrency to proceed.
The court’s decision Wednesday comes the same week that China said it is investigatingthe the microchip company over suspected violations of Chinese anti-monopoly laws. The justices heard arguments four weeks ago in Nvidia’s bid to shut down the lawsuit, then decided that they were wrong to take up the case in the first place. They dismissed the company’s appeal, leaving in place an appellate ruling allowing the case to go forward.
At issue was a 2018 suit led by a Swedish investment management firm. It followed a dip in the profitability of cryptocurrency, which caused Nvidia’s revenues to fall short of projections and led to a 28% drop in the company’s stock price.
Nvidia had argued that the investors’ lawsuit should be thrown out because it does not measure up to a 1995 law, the Private Securities Litigation Reform Act, that is intended to bar frivolous complaints. A district court judge had dismissed the complaint before the federal appeals court in San Francisco ruled that it could go forward. The Biden administration backed the investors at the Supreme Court.
In 2022, Nvidia, which is based in Santa Clara, California, paid a $5.5 million fine to settle charges by the Securities and Exchange Commissionthat it failed to disclose that cryptomining was a significant source of revenue growth from the sale of graphics processing units that were produced and marketed for gaming. The company did not admit to any wrongdoing as part of the settlement.
Nvidia’s recent performance has been spectacular. Even after the news of the China investigation, its share price is up 180% this year.
Nvidia has led the artificial intelligence sector to become one of the stock market’s biggest companies, as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems.
The lawsuit is one of two high court cases that involved class-action lawsuits against tech companies. The justices also dismissed an appeal from Facebook parent Metathat sought to end to a multibillion-dollar class action investors’ lawsuit stemming from the privacy scandal involving the Cambridge Analyticapolitical consulting firm.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
veryGood! (82)
Related
- Proposal to allow local police to make arrests near Arizona border with Mexico will appear on ballot
- Hoda Kotb Reflects on Daughter Hope's Really Scary Health Journey After ICU Stay
- Transcript: Rep. Tony Gonzales on Face the Nation, March 26, 2023
- Nickelodeon Kids' Choice Awards 2023 Red Carpet Fashion: See Every Look
- Las Vegas police could boycott working NFL games over new facial ID policy
- Influencer Rachel Hollis Celebrates Daughter's First Birthday Since Ex Dave Hollis' Death
- Ray J Calls Off Divorce From Princess Love Again
- HSN's Shannon Smith and Shannon Fox Exit Network
- Get Designer Michael Kors Bags on Sale Including a $398 Purse for $59 & More Deals Starting at $49
- Every Bombshell From Alex Murdaugh's Murder Trial Testimony
Ranking
- Jim Harbaugh wants to hire Colin Kaepernick to Chargers' coaching staff. Will the QB bite?
- Denmark invites Russian energy giant to help recover mystery object found near Nord Stream pipeline hit by sabotage
- Finland offering free trips after being named world's happiest country six years in a row
- Who is Shou Zi Chew? What to know about the TikTok CEO testifying before Congress
- Australian Olympic Committee hits out at criticism of controversial breaker Rachael Gunn
- China's Xi to visit Putin in Moscow as Beijing seeks larger global role
- Vanderpump Rules' Tom Sandoval Breaks Silence on Ariana Madix Split
- Chris Rock Says Will Smith Has Selective Outrage With Oscars Slap During Netflix Comedy Special
Recommendation
-
What to stream: Post Malone goes country, Sydney Sweeney plays a nun and Madden 25 hits the field
-
If You're Obsessed With the Stanley Tumbler, You'll Love This $30 Insulated Bottle From Amazon
-
Who is Shou Zi Chew? What to know about the TikTok CEO testifying before Congress
-
These Music Festival Fashion Essentials Will Make Headlines All Season Long
-
Walmart boosts its outlook for 2024 with bargains proving a powerful lure for the inflation weary
-
Revolve's One-Day Only Sitewide Anniversary Sale Has the Trendiest Spring Styles
-
How Matthew Rhys Figured Out His Perry Mason Season 2 Performance “In Real Time”
-
TikTok's Tinx Reveals She and Boyfriend Sansho Scott Have Broken Up