Supreme Court allows class action to proceed against microchip company Nvidia

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Legal Proceedings Notícia

Lawsuits,Courts,Business

The Supreme Court is allowing a class-action lawsuit that accuses Nvidia of misleading investors about its past dependence on selling computer chips for the mining of volatile cryptocurrency to proceed

FILE - A sign to a Nvidia office building is shown in Santa Clara, Calif., on Aug. 7, 2024. 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.

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.

Nvidia's recent performance has been spectacular. Even after the news of the China investigation, its share price is up 180% this year.

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