Image credit: The Byteline

The U.S. Supreme Court has declined to hear Nvidia's appeal to dismiss a class-action lawsuit accusing the chipmaker of misleading investors about its GPU sales to cryptocurrency miners.

The decision, issued on December 11, reinstates a Ninth Circuit Court ruling that revived the case after a California district court had dismissed it in March 2021.

The class-action suit, originally filed in 2018 by Nvidia shareholders, alleges the company concealed over $1 billion in GPU sales linked to crypto mining and accuses CEO Jensen Huang of downplaying the impact of such sales. Shareholders argue that Nvidia's reliance on crypto-related sales inflated its revenue, leading to a sharp decline in stock value — nearly 30% in two days — when the cryptocurrency market crashed in late 2018.

READ MORE: China investigates Nvidia for antitrust violations in chip deal

Nvidia had sought to overturn the Ninth Circuit ruling, arguing the lawsuit relied on a fabricated expert opinion about its business operations and income. Despite these claims, the Supreme Court dismissed the appeal without explanation, a customary practice for the justices.

“We would have preferred a decision on the merits affirming the trial court’s dismissal of the case, but we are fully prepared to continue our defense,” an Nvidia spokesperson said. The company emphasized the importance of “consistent and predictable standards in securities litigation” to protect shareholders and maintain a strong economy.

In October, the lawsuit gained support from the Department of Justice and the Securities and Exchange Commission, which disputed Nvidia’s claims, asserting that the company misrepresented its role in the crypto mining market.

With the Supreme Court's rejection, the case will proceed in lower courts, leaving Nvidia to address allegations that its disclosure practices during the crypto boom misled investors and contributed to significant financial losses during the market downturn.

‍

‍

‍