Current:Home > MySupreme 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 identity View Date:2024-12-26 04:05:50
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! (222)
Related
- How you can get a free scoop of ice cream at Baskin Robbins Wednesday
- Mauricio Umansky Files for Conservatorship Over Father Amid Girlfriend's Alleged Abuse
- A second ex-Arkansas deputy was sentenced for a 2022 violent arrest
- The Latest: Hurricanes have jumbled campaign schedules for Harris and Trump
- Giants trading Jordan Phillips to Cowboys in rare deal between NFC East rivals
- The Latest: Hurricanes have jumbled campaign schedules for Harris and Trump
- California man, woman bought gold bars to launder money in $54 million Medicare fraud: Feds
- A second ex-Arkansas deputy was sentenced for a 2022 violent arrest
- 'Truffles is just like me:' How a Pennsylvania cat makes kids feel proud to wear glasses
- Inflation is trending down. Try telling that to the housing market.
Ranking
- Stuffed or real? Photos show groundhog stuck inside claw machine
- Man is charged with hate crime for vandalizing Islamic center at Rutgers University
- 'It's gone': Hurricane Milton damage blows away retirement dreams in Punta Gorda
- Why Florence Pugh, Andrew Garfield say filming 'We Live in Time' was 'healing'
- Kaley Cuoco and Tom Pelphrey announce engagement with new photos
- Chase Bank security guard accused of helping plan a robbery at the same bank, police say
- Trump seizes on one block of a Colorado city to warn of migrant crime threat, even as crime dips
- Who shot a sea lion on a California beach? NOAA offers $20K reward for information
Recommendation
-
Ex-YouTube CEO Susan Wojcicki dies a year after stepping down. Who is the current CEO?
-
Joan Smalls calls out alleged racist remark from senior manager at modeling agency
-
Far from landfall, Florida's inland counties and east coast still battered by Milton
-
Utah candidates for Mitt Romney’s open US Senate seat square off in debate
-
Lady Gaga’s Brunette Hair Transformation Will Have You Applauding
-
Rihanna Reveals What Her Signature Scent Really Is
-
WNBA Finals will go to best-of-seven series next year, commissioner says
-
Who shot a sea lion on a California beach? NOAA offers $20K reward for information