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US Supreme Court to Hear Nvidia Crypto Mining Case on Securities Pleading Standard | JD Supra

US Supreme Court to Hear Nvidia Crypto Mining Case on Securities Pleading Standard | JD Supra
On June 17, the U.S. Supreme Court granted certiorari in Nvidia Corp. v. E. Ohman J:or Fonder AB, agreeing to hear Nvidia’s appeal of a Ninth Circuit...

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The U.S. Supreme Court has agreed to hear Nvidia Corp.'s appeal of a Ninth Circuit ruling that revived shareholders' fraud claims regarding Nvidia's cryptocurrency mining sales. This case involves the fundamental requirements for pleading securities fraud under the Private Securities Litigation Reform Act of 1995 (PSLRA) and could have significant consequences on future securities litigation. The Court will address whether plaintiffs seeking to allege scienter based on allegations about internal company documents must plead with particularity the contents of those documents, and whether plaintiffs can satisfy the PSLRA's falsity requirement by relying on expert opinions. The outcome could provide clarity on the level of specificity required when alleging scienter based on internal company documents and could limit plaintiffs' ability to rely on expert testimony at the pleading stage. This could potentially further raise the bar for initiating securities fraud class actions and reduce the number of cases that proceed to discovery. The decision could also alleviate the burden on publicly traded companies, which often face high discovery and litigation costs even when allegations are unfounded.

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