Supreme Court to Consider Bid to Dismiss Securities Fraud Lawsuits Against Facebook and Nvidia

The Supreme Court is set to consider bids by Meta's Facebook and Nvidia to fend off federal securities fraud lawsuits in separate cases. The justices may now be poised to rein in the power of private litigants to enforce federal rules aimed at punishing corporate misconduct. Facebook and Nvidia appealed to the Supreme Court after the San Francisco-based 9th U.S. Circuit Court of Appeals allowed separate class action securities fraud lawsuits to proceed against them. The Supreme Court on Wednesday is due to hear arguments in Facebook's bid to dismiss a suit accusing the company of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. The plaintiffs, a group of Facebook investors led by Amalgamated Bank, accused the company in a 2018 class action of withholding information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. Facebook in its Supreme Court filing argued, among other things, that it was not required to state that its warned-of risk had already materialized because