Chip Designer Monolithic Must Litigate Investor’s Nvidia Suit

Monolithic Power Systems Inc. and top executives must contend with allegations of downplaying issues with its chips used for artificial intelligence hardware that ultimately turned its largest customer, Nvidia Corp., toward competitors.

Chief Executive Officer Michael Hsing and former Chief Financial Officer Bernie Blegen’s stock sales during the proposed class period were plausibly suspicious as alleged, bolstering an inference of their intent to defraud, the US District Court for the Western District of Washington said Wednesday. Judge James L. Robart mostly let the suit proceed over the defendants’ motion to dismiss.

Hsing sold 6% of his Monolithic holdings during ...