Author: Bingge Talks about the Market; Source: FX168

The US Department of Justice and the US Securities and Exchange Commission (SEC) have told the Supreme Court that a class-action lawsuit against NVIDIA for allegedly making false statements about its sales of CryptocurrencyMiner should be approved. NVIDIA has been in legal disputes with the investor group since 2018, and the case has now been appealed to the US Supreme Court.

In a friend-of-the-court brief filed on Wednesday, October 2, U.S. Attorney General Elizabeth Prelogar and Senior Counsel Theodore Weiman of the U.S. Securities and Exchange Commission argued that the class-action lawsuit against Nvidia has "sufficient particularity" to survive dismissal by the district court.

(Source: Supreme Court of the United States)

CoinTelegraph pointed out that they also added that the Supreme Court of the United States should approve the appeals court's reinstatement of the lawsuit.

The US Department of Justice and the Securities and Exchange Commission said they are “very interested” in the case because it involves laws aimed at restricting frivolous securities-related litigation.

The briefing also added: 'Valuable private litigation is an important supplement to criminal prosecution and civil enforcement actions by the US Department of Justice and the SEC.'

(Source: Supreme Court of the United States)

It is reported that the group of investors attempted to sue NVIDIA in 2018, accusing it of concealing over $1 billion in GPU sales to Cryptocurrency Miners. It claims that the CEO of the chip manufacturer, Jensen Huang, downplayed NVIDIA's sales to the Cryptocurrency industry.

The organization claims that NVIDIA's sales are supported by Miners, and they believe that this was evident in 2018 when the company's sales collapsed along with the Cryptocurrency market.

The case was dismissed, but the group appealed the ruling, resulting in the Ninth Circuit Court of Appeals resuming the trial in August 2023.

Subsequently, Nvidia appealed to the Supreme Court, seeking to overturn the ruling.

NVIDIA claims that the lawsuit is based on fabricated expert opinions about its business and revenue, but the US Department of Justice and the US Securities and Exchange Commission have refuted this, saying "that's not what happened here".

Regulators also acknowledged investors' rebuttal to Nvidia's statement, which reportedly includes evidence related to a former Nvidia executive's account, as well as a report from a Canadian bank claiming the company underestimated its Cryptocurrency revenue by $1.35 billion.

In another amicus brief filed on the same day, 12 former officials of the U.S. Securities and Exchange Commission supported the investors, stating that "private enforcement of federal securities laws is crucial to the integrity of the U.S. Capital Market."

They criticized NVIDIA's argument, claiming that it would set a precedent 'requiring plaintiffs to have access to internal documents and databases before the investigation, and prohibiting the use of experts during the litigation phase'.

They added, "Neither of these has received legal or good policy support."

On Wednesday, another 6 statements of support from investor groups were submitted to the court. These statements come from quantitative experts, law professors, institutional investors, the American Bar Association, and the Anti-Fraud Alliance.