Supreme Court allows investors' class action to proceed against Bay Area microchip company Nvidia

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Lawsuit,China,San Francisco

The Supreme Court is allowing a class-action lawsuit that accuses Santa Clara-based Nvidia of 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 investigating the 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.

Ensuring that investors can seek justice is essential to preserving fairness and transparency,' Deepak Gupta, who represented the investors at Supreme Court, said in a statement.In 2022, Nvidia paid a $5.5 million fine to settle charges by the Securities and Exchange Commission that 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.

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