FX168 Financial News (Asia Pacific) reported: The US Department of Justice and the Securities and Exchange Commission (SEC) have informed the Supreme Court that the accusation against Nvidia for making false statements about its sales to cryptocurrency miners in an investor class action lawsuit should be approved. Nvidia has been in legal disputes with investor groups since 2018, and the case has now been appealed to the US Supreme Court.

In a court filing on Wednesday, October 2nd, US Attorney General Elizabeth Prelogar and SEC Senior Lawyer Theodore Weiman argued that the class action lawsuit against Nvidia has "sufficient detail" to avoid dismissal by the district court.

(Source: US Supreme Court)

CoinTelegraph pointed out that they additionally stated that the US Supreme Court should approve the appellate court's restoration of the lawsuit.

The US Department of Justice and the SEC stated that they are "very interested" in this case because it involves laws aimed at limiting frivolous securities-related litigation.

The brief also added: "Valuable private litigation is an important complement to the criminal and civil enforcement actions of the US Department of Justice and the SEC."

(Source: Supreme Court of the usa)

It is reported that in 2018, the investor group attempted to sue nvidia, accusing it of concealing GPU sales to cryptominers exceeding $1 billion. It claimed that the chip manufacturer's CEO Jensen Huang downplayed nvidia's sales to the crypto industry.

The organization claims that nvidia's sales were supported by miners, which became evident in 2018 when the company's sales collapsed along with the crypto market.

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

Subsequently, nvidia appealed to the Supreme Court to overturn the judgment.

nvidia claims that the lawsuit is based on expert opinions that fabricate information about its business and revenue. However, the U.S. Department of Justice and the U.S. Securities and Exchange Commission countered, stating "that is not what happened here".

Regulatory agencies also acknowledged investors' rebuttal to nvidia's claims, citing evidence related to former nvidia executive accounts and a report from a Canadian bank alleging the company underestimated its crypto revenue by $1.35 billion.

In a separate amicus brief submitted on the same day, 12 former officials from the U.S. Securities and Exchange Commission supported the investors, stating "private enforcement of federal securities laws is crucial for the integrity of the U.S. capital markets".

They criticized Nvidia's argument, claiming that the argument would set rules that "require plaintiffs to have access to internal company documents and databases before the investigation, and prohibit the use of experts during the litigation phase".

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

On Wednesday, another 6 court filings supporting investor groups were submitted. These filings come from algo experts, law professors, institutional investors, the American Bar Association, and the Anti-Fraud Alliance.