Nvidia to face lawsuit as Supreme Court dismisses appeal

The US Supreme Court has decided not to hear an appeal from Nvidia Corp . (NASDAQ:NVDA ), the world's leading chipmaker by market value, effectively requiring the company to confront a lawsuit alleging it misled investors about its dependence on crypto-mining sales. The lawsuit claims Nvidia did not accurately disclose the extent of its revenue from cryptocurrency mining, which became a significant issue when the market experienced a downturn.

This decision comes after deliberations among the justices, who four weeks earlier expressed doubts about whether the case involved a broad legal question meriting the Supreme Court's intervention. Nvidia had argued that the lawsuit was too vague and should not proceed to the discovery phase, where evidence is presented and examined.

The Supreme Court's brief order stated, "PER CURIAM. The writ of certiorari is dismissed as improvidently granted. It is so ordered." This dismissal leaves Nvidia to contend with the legal proceedings at a lower court level, where the plaintiffs will seek to prove their allegations that the company's disclosures to shareholders were insufficient and misleading, particularly regarding the crypto-mining business's contribution to Nvidia's overall revenue.

In other recent news, Ayar Labs, a company specializing in optical data transfer technology, secured a hefty $155 million in funding from top US chipmakers NVIDIA, AMD (NASDAQ:AMD ), and Intel (NASDAQ:INTC ). This strategic investment, led by Advent Global Opportunities and Light Street Capital, boosts Ayar Labs' market value past the $1 billion mark, demonstrating a significant industry endorsement of the company's innovative approach to AI processing.

In parallel, NVIDIA is under scrutiny by the European Union's antitrust regulators. The inquiry is focusing on whether the company is unfairly bundling its products, and could potentially escalate into a formal investigation.

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Source: Investing.com