Nvidia High Court Test Weighs Securities Suits as SEC Backstop

Nvidia Corp.'s argument before the US Supreme Court next month pits the software and computing giant not only against investors alleging securities fraud, but also against two federal agencies that have thrown their support behind the shareholder lawsuit.

The Securities and Exchange Commission and the Justice Department said in an amicus brief that the investors’ complaint contained sufficient fraud allegations for the high court to uphold the US Court of Appeals for the Ninth Circuit reviving the proposed class action.

The justices this week granted Solicitor General Elizabeth Prelogar’s request to weigh in at the case’s Nov. 13 hearing. The ...