Supreme Court dismisses Nvidia's appeal in securities fraud lawsuit

Dec. 11 (UPI) -- Much of the case against Nvidia charging it misrepresented its reliance on the cryptocurrency mining industry will now move forward after the U.S. Supreme Court said Wednesday it will not hear a case challenging an appeals court ruling.

The court, which heard arguments last month on whether it should allow the lawsuit brought by two investors, suggested it was a mistake to take it up in the first place.

The one-sentence opinion dismissed the case as "improvidently granted." The decision, thus, allowed a ruling from the 9th U.S. Circuit Court of Appeals to stand, allowing the case to move toward a trial.

During the Supreme Court hearing, some justices expressed frustration over the complexity and outside its expertise to determine if it should be dismissed.

The fight between Nvidia and its opposing investors goes back to 2018 after the tech giant said it missed revenue projections in the quarter before and forecasted a year-to-year drop in total revenues for the following quarter.

The news resulted in Nvidia's stock at the time nose-diving 28.5% over the two trading days.

Nvidia, which has recently exploded with the emergence of artificial intelligence, also sells graphic processing units, or GPUs, for video games but also are used for mining cryptocurrency.