when

Meta

A class action lawsuit has been allowed against <a href="https://thebitjournal.com/nvidia-and-alibaba-partnership-fuels-fet-and-near-price-surge-casino-presale-set-to-surpass-4-million-investment-mark/">Nvidia</a>, which the U.S. Supreme Court is accusing of misleading investors. Nvidia is facing claims that it understated its dependence on cryptocurrency mining revenue to the detriment of the stock. The suit had previously been thrown out by an appeals court, but the court overturned that decision and allowed the case to continue. 
<a href="https://www.qubetics.com/?utm_source=TBJ&amp;utm_medium=Crypto+Mining+Cover-Up%3F+Nvidia+Hit+with+Class-Action+Lawsuit+Approval" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="wp-image-67567 size-full aligncenter" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/11/Qubetics-is-728x90-1-3.jpg" alt="Frax Finance" width="728" height="90" title="Crypto Mining Cover-Up? Nvidia Hit with Class-Action Lawsuit Approval 62" srcset="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/11/Qubetics-is-728x90-1-3.jpg 728w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/11/Qubetics-is-728x90-1-3-300x37.jpg 300w" sizes="(max-width: 728px) 100vw, 728px"></a> 
<h2 id="b-nvidia-faces-legal-battle-over-crypto-claims-b">Nvidia Faces Legal Battle Over Crypto Claims</h2> 
Nvidia’s appeal was dismissed by the Supreme Court, which was not willing to intervene in the ongoing lawsuit. The decision means the ruling by a federal appeals court that left most claims against Nvidia intact stands. The court does not have to set a precedent for applying securities fraud laws by declining to address the case. 
Nvidia had asked a judge to dismiss the case under the Private Securities Litigation Reform Act, arguing that plaintiffs failed to show they had sufficient evidence. But the appeals court decided there was enough merit in the case to go on. It’s a setback, too, for Nvidia, which has come under growing pressure to clarify how it’s booking up crypto-related revenue. 
<h2 id="b-nvidia-accused-of-hiding-crypto-mining-reliance-b">Nvidia Accused of Hiding Crypto Mining Reliance</h2> 
The<a href="https://www.supremecourt.gov/opinions/24pdf/23-970_2dq3.pdf" rel="nofollow noopener" target="_blank"> lawsuit</a> is based on a complaint&nbsp;filed by a Swedish investment firm against Nvidia over missed revenue forecasts in 2018. A downturn in cryptocurrency mining profitability led to a 28% drop in Nvidia’s stock value over that time. Nvidia is accused of failing to disclose its dependence on crypto mining, which investors say artificially inflated the company’s stock price. 
Plaintiffs say that Nvidia misled investors by providing incorrect information about its revenue sources. The company contends that it chose to minimize the importance of crypto-related sales when reporting its financials. They argue that this misrepresentation alleged misrepresentation of securities law and hurt shareholders,’ the Reuters report said. 
<img loading="lazy" decoding="async" class="wp-image-75856 size-full aligncenter" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining.webp" alt="Crypto Mining Cover-Up? Nvidia Hit with Class-Action Lawsuit Approval = The Bit Journal" width="1792" height="1024" title="Crypto Mining Cover-Up? Nvidia Hit with Class-Action Lawsuit Approval 63" srcset="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining.webp 1792w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining-300x171.webp 300w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining-1024x585.webp 1024w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining-768x439.webp 768w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining-1536x878.webp 1536w, https://thebitjournal.b-cdn.net/wp-content/uploads/2024/12/Crypto-Mining-860x491.webp 860w" sizes="(max-width: 1792px) 100vw, 1792px"> 
The company rejected the allegations, saying its financial statements complied with disclosure requirements. In 2022, the company previously settled related charges with the Securities and Exchange Commission by paying a $5.5 million fine. However, the authorities said the settlement did not include admitting liability or wrongdoing and may face further legal challenges and appeals. 
<h2 id="b-china-investigates-nvidia-over-antitrust-allegations-b">China Investigates Nvidia Over Antitrust Allegations</h2> 
Along with the U.S. lawsuit, international regulators continue to pressure Nvidia. Recently, the company became embroiled in a Chinese antitrust probe after potentially monopolistic practices were alleged. The probe comes as the company, which has dominated the technology sector, particularly artificial intelligence, was fined 648 million euros ($823 million) for price fixing. 
&nbsp; 
The company’s legal and regulatory battle gets complicated for <a href="https://apnews.com/hub/us-securities-and-exchange-commission" rel="nofollow noopener" target="_blank">China’s investigation</a> as the latter might affect its business. However, the company’s AI chips are critical to training machine learning systems and, therefore, a major player in the global tech business. However, despite these legal hurdles, the tech giant’s stock has jumped about 180 percent this year as demand for AI technologies has soared. 
&nbsp; 
The antitrust probe echoes other probes against other major tech companies over alleged unfair practices. The increased scrutiny on the company comes as analysts and technology reviewers cast a wary eye over the market consolidation sweeping the semiconductor industry. Regulators around the world are trying to make dominant technology firms play ball. 
The company is one of several high-profile technology companies swept up in a trend of class action lawsuits targeting big companies for alleged malfeasance. Similar lawsuits have arisen regarding securities fraud and privacy violations in recent years. Take, for example, the class action lawsuit that Meta Platforms was subjected to earlier this year over a privacy breach linked to Cambridge Analytica. 
Nvidia’s appeal to the Supreme Court of Meta’s case follows suit. In both, lower court rulings allowing the lawsuits to proceed were upheld but only after allegations of securities fraud. These outcomes indicate a desire by courts to permit investors to seek redress against principal companies. 
Stay tuned to<a href="https://thebitjournal.com/"> The BIT Journal</a> and keep an eye on Crypto’s updates. Follow us on<a href="https://twitter.com/Thebitjournal_" rel="nofollow noopener" target="_blank"> Twitter</a> and<a href="https://www.linkedin.com/company/the-bit-journal/" rel="nofollow noopener" target="_blank"> LinkedIn</a>, and join our<a href="https://t.me/thebitjournal" rel="nofollow" target="_blank"> Telegram</a> channel to be instantly informed about breaking news!

Crypto Mining Cover-Up? Nvidia Hit with Class-Action Lawsuit Approval

Table of Contents

The Bit Journal

Other articles published on Dec 12, 2024

Ukraine to Legalize Crypto in 2025, but Here’s the Catch

DMM Bitcoin to Liquidate After $320M Hack

Best ICO Trackers: Monitor and Evaluate ICO Success

Bitcoin Exchange OKX Announces Listing of Many Altcoins at USD Trading Parity! Here Are Those Alt...

XRP's Path to $5.85: Can Ripple's Legal Clarity Boost Its Momentum?

BTFD Coin’s Beta Game Launch, Neiro’s Rapid Growth, and Notcoin’s Possible Surge Among the Best M...

Join our free newsletter for daily crypto updates!