On Dec. 11, 2024, the U.S. Supreme Court rejected NVDA’s (NVDA, Financial) appeal of a $1 billion class-action lawsuit, adding to the company’s legal scrutiny. First filed in 2018, the case alleges that the GPU giant underreported cryptocurrency mining sales during a shaky crypto market period, causing investors millions of dollars in losses.
The Supreme Court ruling left the case intact; the Ninth Circuit Court of Appeals ruling upheld the territorially based suit against the county. They allege NVIDIA understated crypto-related revenue by $1.35 billion, which cost investors $3.8 billion. This resulted in a 30% drop in the company’s share price when crypto-driven GPU sales collapsed in late 2018.
NVIDIA is under pressure from the Department of Justice and the Securities and Exchange Commission, which has backed the lawsuit. ‘We would have liked for a decision affirming the trial court’s dismissal, but are ready to defend ourselves.’
NVIDIA faces increased antitrust scrutiny, including an ongoing antitrust investigation in China. Legal experts suggest that the proceedings could set a precedent for further scrutiny of corporate transparency surrounding cryptocurrency disclosures in the GPU market that continues to be influenced by the ebb and flow of crypto market dynamics.
As the case continues, NVIDIA must appear in the Ninth Circuit.
This article first appeared on GuruFocus.
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