November 14, 2024
US Supreme Court Considers Nvidia’s Bid to Avoid Securities Fraud Case
The case centers on whether plaintiffs meet the higher standards set by the 1995 Private Securities Litigation Reform Act for filing fraud lawsuits.
The U.S. Supreme Court reviewed Nvidia’s bid to dismiss a securities fraud lawsuit accusing the AI chipmaker of misleading investors about its reliance on the volatile cryptocurrency market.
The case centers on whether plaintiffs meet the higher standards set by the 1995 Private Securities Litigation Reform Act for filing fraud lawsuits. Some justices questioned whether the issue was a factual dispute rather than a legal matter.
Plaintiffs’ attorney, Deepak Gupta, was challenged by Justice Neil Gorsuch over Nvidia’s claim that the lawsuit’s assertions were based on insufficient expert analysis from Prysm Group.
