01:04 PM EST, 12/11/2024 (MT Newswires) -- (Updates with more details on the lawsuit in the second and third paragraphs and Nvidia's ( NVDA ) response in the final paragraph.)

The US Supreme Court on Wednesday dismissed the writ of certiorari as "improvidently granted" for Nvidia's ( NVDA ) appeal of a lower court's ruling that allowed a 2018 class action by shareholders alleging securities fraud to proceed.

The lawsuit was filed in 2018 by shareholders who alleged that Nvidia ( NVDA ) misled investors over its dependence on cryptocurrency revenue ahead of a market crash that also led to the company's stock price decline in November of the same year, Reuters reported.

In its appeal, Nvidia ( NVDA ) argued that the plaintiffs had failed to prove that the company intentionally misled investors and that the disputed corporate statements were indeed false, according to Reuters.

"We would have preferred a decision on the merits affirming the trial court's dismissal of the case, but we are fully prepared to continue our defense," a Nvidia ( NVDA ) spokesperson told MT Newswires. "Consistent and predictable standards in securities litigation are essential to protecting shareholders and ensuring a strong economy, and we remain committed to supporting them."

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