The Supreme Court has ruled against Nvidia’s motion to dismiss the crypto lawsuit

The Supreme Court has rejected CPU juggernaut Nvidia’s request to dismiss an investor-led class action lawsuit alleging the company’s sales of GPUs related to crypto-mining were undercut.

The United States Supreme Court rejected Nvidia’s request without explanation December 11 decision. The ruling means the lawsuit will continue, even though the lawsuit was originally dismissed by a California district court in March 2021.

“We would have preferred a judgment 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. Decryption. “Consistent and predictable standards in securities litigation are critical to protecting shareholders and ensuring a strong economy, and we stand ready to support them.”

The decision came after US Attorney General Elizabeth Prelogar and Securities and Exchange Commission (SEC) Senior Counsel Theodore Weiman. said that the suit should be allowed to proceed By the Supreme Court. The comments were contained in a briefing by the Department of Justice and the SEC aimed at supporting investor claims.

“Let the judgment of the appellate instance be upheld,” the document concludes.

The lawsuit was originally filed by a group of Nvidia shareholders in 2018, alleging that the company hid more than $1 billion in GPU sales to cryptocurrency miners, and that the company’s CEO downplayed sales related to crypto mining.

In the first quarter of 2021, Nvidia earned $155 million in sales related to cryptocurrency processing. That year, the company launched its line special CMP cards To satisfy the crypto-mining market and failed attempt up to limiting the efficiency of mining of other new cards.

Despite the company’s huge profits from cryptocurrency, said Michael Kagan, the firm’s chief technology officer By the end of March 2023, this crypto “doesn’t bring anything useful to society”.

The comments come after the GPU maker invested heavily in developing products aimed at developing artificial intelligence (AI) rather than crypto mining. November reports are displayed Nvidia saw record revenue and earnings in the third quarter of fiscal 2025, driven primarily by the firm’s dominance in the AI ​​and accelerated computing space.

Edited by Stacey Elliott.