The Supreme Court rejects NVIDIA’s appeal of securities fraud.
A dispute over a securities fraud case against graphics chip manufacturer NVIDIA was rejected by the judges on Wednesday. Investors claimed that NVIDIA failed to reveal how much their shares were at risk from sales to cryptocurrency miners rather than gaming companies. NVIDIA Corp v. E. Ohman J: or Fonder AB was heard by the court only last month, therefore the dismissal was expected. The justices’ frequent remarks that the dispute was too fact-specific to merit their attention dominated the argument.
According to the high pleading standard for securities fraud cases under the Private Securities Legal Reform Act, the case’s specific concern was whether the complaint was precise enough to prove fraud. The investors will now have another chance to prove their case against NVIDIA when the matter returns to the trial court. After agreeing to hear the case, NVIDIA had reasonable expectations that the justices would overturn the lower court’s ruling, so this is a significant setback for the company.