he U.S. Supreme Court will consider soon the offers from two tech giants, Meta and Nvidia which are trying to dismiss the Facebook lawsuit as well as
the Nvidia lawsuit. These cases might have an impact on private litigants and their ability to hold companies to account.
Several Supreme Court rulings published back in June had managed to reduce the federal regulator's authority including those who defend the securities fraud, Securities and Exchange Commission. So now, justices might be able to control the power of private plaintiffs in order to enforce the federal rules for punishing corporate misconduct.
According to a former SEC lawyer, Andrew Feller, the U.S. Supreme Court registered a recent trend in issuing some business-friendly rulings to limit the federal regulators’ authority. So, this eventually indicated that Facebook Meta and Nvidia can also have a “receptive audience” among justices. Currently, the U.S. Supreme Court includes a 6-3 conservative majority.
"I think business interests will continue their recent pattern of aggressively challenging rules intended to hold them accountable, including by challenging the remaining private rights of action,", Andrew Feller stated.
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In this situation, for the Facebook lawsuit and Nvidia lawsuit, these two companies appealed to the U.S. Supreme Court shortly after the U.S. Court of Appeals, with a base in San Francisco, decided to permit separate class action securities fraud lawsuits to move forward against them.
This Wednesday the U.S. Supreme Court is set to hear various arguments in the Facebook lawsuit situation in order to dismiss the suit which accuses the social media platform of misleading investors. This violated the Securities Exchange Act, which represents a 1934 federal law and requires publicly traded companies to expose their risks in business.
On November 13, the U.S. Supreme Court will dispute the Nvidia lawsuit which aims to rush the action accusing the chipmaker company of misleading investors about the amount of sales that went to the cryptocurrency industry.
"I think it's hard to predict exactly which way private actions will trend, but it's not hard to imagine that they may take on greater significance.", David Shargel, a lawyer in private practice, stated.
We’ll have to see how these Facebook and Nvidia lawsuits will conclude and if they will affect the daily business of these companies.
Stay tuned for more updates!
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