The U.S. Supreme Court has dismissed a lawsuit that accuses Nvidia (NVDA) of misrepresenting its reliance on the cryptocurrency mining industry.
In a one-sentence opinion, the highest court in America dismissed the case as “improvidently granted,” meaning the justices concluded that it had been a mistake to consider the legal case.
The result of the ruling is to let the case brought by shareholders proceed. Nvidia had been hoping the Supreme Court would rule against the lawsuit.
An investment firm and a pension fund have brought the case against Nvidia, claiming the company concealed its dependence on crypto mining before a 2018 crash sunk the chipmaker’s share price.
However, since then both Nvidia’s stock and crypto prices have recovered and surged higher.
The main reasons given by the U.S. Supreme Court for refusing to hear the Nvidia case is that it’s too technical for the justices to interpret and decide.
The main question before the justices was whether the investment firm and pension fund suing Nvidia for securities fraud had satisfied a 1995 law that requires investors to provide details supporting their case at the outset of such lawsuits.
Lawyers for Nvidia had argued that the plaintiffs had not sufficiently proven that fraud had been committed by the company. Next steps in the legal case are not immediately known.
Nvidia’s stock has risen 189% this year and currently trades at $139.31 U.S. per share.
Tech Insider
