Supreme Court Reviews Nvidia's Challenge to Securities Fraud Lawsuit

Nvidia argues against a class action lawsuit claiming it misled investors about the impact of cryptocurrency mining on its revenue.

Nvidia is contesting a class action lawsuit that alleges it misled investors about the extent of its revenue from cryptocurrency mining.
The lawsuit claims Nvidia's CEO, Jensen Huang, downplayed the impact of crypto mining on sales, which led to a significant stock drop when the truth emerged.
Nvidia's legal team argues that the lawsuit does not meet the pleading standards set by the Private Securities Litigation Reform Act of 1995
During Supreme Court hearings, justices expressed skepticism about the need for a new rule to address the case, questioning Nvidia's requirement for direct evidence.
A decision by the Supreme Court could potentially raise the legal standards for securities fraud claims, impacting future litigation.