Facebook, Nvidia push SCOTUS to limit “nuisance” investor suits after scandals
The Supreme Court will soon weigh two cases that could potentially make it harder for misled investors to sue Big Tech companies after major scandals.
One case involves one of the largest tech scandals of all time, the Facebook-Cambridge Analytica data breach. In 2019, Facebook agreed to pay “more than $5 billion in civil penalties to settle charges by the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC) that it had misled its users and investors over the privacy and security of user data on its platform,” a Supreme Court filing said.
The other case involves an allegation that Nvidia intentionally hid how much of its 2017–2018 GPU demand was due to a volatile cryptocurrency boom and not Nvidia’s core gaming business—allegedly misleading investors ahead of a crypto crash. After the bust, Nvidia suddenly had to slash half a billion dollars from its earnings projection, and market experts later estimated that the firm had understated its crypto-related revenue by more than a billion. In 2022, Nvidia paid a $5.5 million SEC penalty over the inadequate disclosures that one SEC chief said “deprived investors of critical information to evaluate the company’s business in a key market.”
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”