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Nvidia Legal Spat Puts Crypto Industry at Risk of Multiple Lawsuits, Says Advocacy Group
The top court of the United States has recently given a go-ahead to a legal spat between tech giant Nvidia and a class group of investors sparking concerns that this could put the crypto industry at risk of facing news “securities lawsuits”.
In an Amicus brief earlier this week on August 20, The Digital Chamber (TDC), (formerly known as The Chamber of Digital Commerce) supported Nvidia’s request to the US Supreme Court to overturn the decision of the appellate court from last August.
This decision reinstates a lawsuit accusing Nvidia of downplaying the number of GPUs it sold to crypto miners. Speaking on the development, TDC founder and CEO, Perianne Boring, said that they “felt compelled to weigh in due to the grave risks of a potential increase in frivolous securities lawsuits based on nothing more than unfounded negative perceptions about the cryptocurrency industry and its high-growth business cycle”.
TDC also argued over the class-action lawsuit against Nvidia adding that it relied on an expert opinion based on “unsupported assumptions and inferences” regarding the crypto industry and Nvidia’s sales.
TDC also blamed the plaintiffs for failing to “identify any specific document, presentation, testimony, or internal material” to substantiate their claims. The Digital Chamber has also warned about a great impact on the crypto industry. It wrote:
“There is nothing to stop other plaintiffs from hiring other experts to do the same thing. The impact will be felt the greatest by the most cutting-edge companies, like many in the cryptocurrency industry.”
Some of the top firms from the crypto industry such as Ripple, Binance, and Crypto.com are members of the TDC.
Nvidia Hit $1 Billion in GPU Sales to Crypto Miners
As per the lawsuit filed back in 2018, Nvidia achieved a staggering $1 billion in GPU sales to crypto miners while blaming CEO, Jensen Huang for downplaying the numbers. Besides, the lawsuit also later noted that crypto miners propped up the sales numbers following Nvidia’s financial results.
TDC argued that the case fails to meet the standards established by the Private Securities Litigation Reform Act of 1995 (PSLRA), which is designed to protect “critical, emerging technologies”.
“If the plaintiffs win, it will set a dangerous precedent, allowing speculative and unsupported claims to succeed in court,” the Chamber said in its statement.
Furthermore, it also added that this could lead to a flood of lawsuits against the crypto firms and stifle innovation by burdening them with costly litigations. “Ultimately, this would slow the growth of blockchain technology and undermine the very protections that the PSLRA was designed to provide for emerging, high-tech industries,” the group said.
Nvidia Legal Spat Puts Crypto Industry at Risk of Multiple Lawsuits, Says Advocacy Group
