Based

<p>The post <a href="https://coinpedia.org/news/reviving-nvidia-lawsuit-could-invite-danger-to-crypto-giants-tdc-warns/">Nvidia Lawsuit Revival Could Spell Trouble for Crypto Companies</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The advocacy group, The Digital Chamber (TDC) has warned that the U.S. Supreme Court’s decision to allow a revived lawsuit against Nvidia could invite grave trouble for the crypto world.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-2018-nvidia-lawsuit-could-trouble-crypto"><strong>2018 Nvidia Lawsuit Could Trouble Crypto</strong></h2> 
<p>The suit revived from 2018, accuses Nvidia of misleading investors about its GPU sales to crypto miners. The complaint claims that Nvidia issued deliberately misleading statements that understated more than $1 billion in GPU sales relating to crypto miners during 2017 and 2018. Nvidia was hit with a string of lawsuits from investors after its stock price crashed nearly 30% after announcing that revenues would fall 7% during late 2018.</p> 
<h2 class="wp-block-heading" id="h-impact-to-be-felt-by-cutting-edge-companies"><strong>Impact To Be Felt By Cutting-edge Companies</strong></h2> 
<p>TDC claims that the class suit against Nvidia used an expert opinion that relied on “unsupported assumptions and inferences” about the crypto industry and Nvidia’s sales. In this case, the plaintiffs rely on non-evidence-based “expert opinions.” It explains that these opinions, based on general market research and unreliable or hidden assumptions, are not enough which undermines the purpose of the PSLRA.</p> 
<p> It stated “The impact will be felt the greatest by the most cutting-edge companies, like many in the cryptocurrency industry.” Notably, TDC’s members include industry crypto giants such as Crypto.com, Ripple and Binance.</p> 
<p>TDC in its facts noted that the Private Securities Litigation Reform Act of 1995 (PSLRA) was passed by Congress to curb the surge of frivolous lawsuits, offering protection to growing tech companies by imposing stricter requirements on private plaintiffs pursuing securities class actions.</p> 
<h2 class="wp-block-heading" id="h-why-it-matters"><strong>Why It Matters?</strong></h2> 
<p>TDC in its <a href="https://digitalchamber.org/the-digital-chamber-files-supreme-court-amicus-brief-in-nvidia-corp-v-e-ohman-jor-fonder-ab/" target="_blank" rel="noreferrer noopener nofollow">blog </a>shared that ‘it felt compelled to weigh in due to the grave risks of more frivolous securities lawsuits based on nothing more than unfounded negative perceptions about the cryptocurrency industry and its high-growth business cycle.’</p> 
<p>It emphasized that If the plaintiffs win, it will set a dangerous precedent, that will allow speculative and unsupported claims to succeed in court. This could lead to a surge in pointless lawsuits against companies in the cryptocurrency industry, which would suppress innovation by burdening them with costly litigation and would discourage investment.</p> 
<p>TDC claims that this would undermine the very protections designed by the PSLRA to safeguard emerging tech industries from costly, speculative litigation.</p> 
<p>Also Check Out: <a href="https://coinpedia.org/news/crypto-legislation-2024-how-gop-senate-hopes-to-reshape-us-crypto-regulations/" target="_blank" rel="noreferrer noopener">Crypto Legislation 2024: How GOP Senate Hopes to Reshape US Crypto Regulations</a></p>

Nvidia Lawsuit Revival Could Spell Trouble for Crypto Companies

Table of Contents

CoinPedia News

Other articles published on Aug 22, 2024

Goldman Sachs Contradicts Past Skepticism with $418M Bitcoin ETF Investment

What is the New Ethereum Layer-2 Network Corn?

FTX Executive’s Partner Charged in Campaign Finance Scandal

Crypto Reacts to Fed's Market Signal: Details

Rollblock Set to Dominate Crypto Market Well into September Surpassing Stellar Meme Coins FLOKI a...

Binance and CZ Face Lawsuit in Seattle Federal Court Over Alleged Money Laundering Practices

Join our free newsletter for daily crypto updates!