The U.S. Supreme Court has unexpectedly dropped its review of a high-profile securities case against Nvidia Corp., marking the second time this year it has backed away from a shareholder class action it initially agreed to consider.
In a brief statement issued Wednesday, the justices dismissed Nvidia’s petition for certiorari, stating only that it had been “improvidently granted.” The court offered no further explanation for its decision.
This move mirrors a similar ruling just weeks ago, when the justices declined to proceed with a shareholder case involving Meta Platforms Inc. Both cases had advanced to oral arguments in October.
The Nvidia case, accepted by the Supreme Court in June, centered on crucial aspects of the Private Securities Litigation Reform Act (PSLRA). At issue was whether investors need internal company documents to substantiate claims of corporate misrepresentation and the extent to which they can rely on expert reports to bypass such requirements.
Investors alleged in a 2019 lawsuit that Nvidia and CEO Jensen Huang concealed the company’s $1 billion exposure to the volatile cryptocurrency market. They claimed Nvidia’s reliance on crypto miners as major buyers of its graphics processing units created significant risk, which was hidden from shareholders.
