NVIDIA v. E. Ohman J:or Fonder AB

On December 11, 2024, NVIDIA Corporation petitioned the U.S. Supreme Court to review a Ninth Circuit decision reviving a securities class action. The plaintiff, Swedish investment firm E. Ohman J:or Fonder AB, alleges NVIDIA misled investors about the extent to which its gaming revenue growth relied on volatile cryptocurrency mining demand during 2017-2018. The case centers on whether plaintiffs adequately alleged falsity and scienter under the Private Securities Litigation Reform Act. NVIDIA argues the Ninth Circuit erred by allowing the case to proceed based on expert analysis and internal documents that, according to NVIDIA, fail to demonstrate the company knowingly misrepresented its revenue drivers.

NVIDIA filed a petition for a writ of certiorari with the U.S. Supreme Court on December 11, 2024, seeking reversal of the Ninth Circuits decision that revived the class action lawsuit. The Supreme Court has not yet decided whether to grant review.

Whether the Ninth Circuit improperly lowered the pleading standards for securities fraud by allowing the case to proceed despite plaintiffs allegedly failing to plead particularized facts establishing falsity and scienter, and whether internal company documents and expert analysis can substitute for specific factual allegations about misrepresented revenue sources from cryptocurrency mining.

This case has significant implications for the technology sector and securities litigation, as it may clarify the pleading requirements for shareholder lawsuits involving complex revenue attribution. A Supreme Court ruling could reshape how companies disclose revenue derived from volatile emerging markets like cryptocurrency, potentially affecting corporate transparency obligations and the viability of securities fraud claims based on internal data analysis.