U.S. Supreme Court rejects NVIDIA's request to dismiss cryptocurrency class action lawsuit

The U.S. Supreme Court has rejected NVIDIA's appeal request to dismiss a cryptocurrency class action lawsuit.
The Supreme Court dismissed IDIA's appeal without further explanation. The decision effectively affirmed the Court of Appeals' decision that reinstated the case, which had been dismissed by a California district court in March 2021.
The lawsuit was filed in 2018 by a group of NVIDIA shareholders, who alleged that NVIDIA had sold more than $1 billion in GPUs to cryptocurrency miners.
They claim that the company has covered up the fact that it was trading at a low price and that CEO Jensen Huang has reduced sales to the cryptocurrency industry.
"We hope that the lower court ruling that confirmed the dismissal of the case will be upheld on the merits," an NVIDIA spokesperson said in an interview with Cointelegraph.
"But we stand ready to continue our defense," he said. "Consistent and predictable standards in securities litigation are essential to protecting shareholders and maintaining a strong economy, and we will continue to defend ourselves."
"We continue to support this," he added. In the lawsuit, shareholders allege that NVIDIA's sales of GPUs are subsidized by sales to cryptocurrency miners, and that the company filed suit in late 2018.
He noted that Nvidia's shares plummeted nearly 30% in two days as asset markets fell and sales volumes plummeted.
NVIDIA claims the lawsuit is based on fabricated information about its business and revenues.
However, in October, the U.S. Department of Justice and the Securities and Exchange Commission (SEC) stated that "NVIDIA's allegations are not what happened in this case," and dismissed the plaintiffs' claims.
The agencies presented evidence, including statements from NVIDIA executives and Canadian bank reports, alleging that NVIDIA generated $1.35 billion in cryptocurrency revenue.
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