The U.S. Supreme Court dismissed Nvidia Corp's
The case, brought by Swedish investment firm E. Ohman J:or Fonder AB, accuses the chipmaker of misleading investors about the extent of its cryptocurrency-related sales.
This decision allows the lower court's ruling, which revived the 2018 class action, to stand, Reuters reports.
The plaintiffs allege that Nvidia and its CEO Jensen Huang downplayed the impact of cryptocurrency sales on the company's revenue during 2017 and 2018. After cryptocurrency profitability declined, Nvidia's revenues missed projections, causing its stock price to drop by 28%.
As digital currencies like Bitcoin and Ethereum surged, Nvidia's graphics chips gained popularity among cryptocurrency miners. Yet as crypto profitability declined in late 2018, Nvidia's revenue fell below projections, leading to a drop in its stock price.
The Supreme Court's one-line order did not give further detail. Nvidia argued the plaintiffs failed to prove the company's statements were false or intentionally misleading.
Without admitting wrongdoing, Nvidia previously agreed to a $5.5 million settlement with U.S. regulators in 2022 over similar disclosure issues.
According to the Reuters report, President Joe Biden supported the shareholders in the case.
Nvidia stock has surged 174% year-to-date thanks to the artificial intelligence frenzy. Bitcoin has gained 138%. Nvidia surged 2,436% in the last five years compared to Bitcoin's 1,292%.
NVDA Price Action: NVDA stock is up 2.5% at $138.45 at the last check on Wednesday.
