Facebook and Nvidia Ask U.S. Supreme Court To Shield Them From Securities Fraud Suits

The U.S. Supreme Court is set to consider requests by two tech giants—Meta's Facebook and Nvidia—to fend off federal securities fraud lawsuits in separate cases that could make it harder for private litigants to hold companies accountable, John Kruzel reported for Reuters.

Facebook and Nvidia are projected to find a receptive audience before the 6-3 conservative majority.

Following a trio of Supreme Court rulings in June that weakened federal regulators, including the Securities and Exchange Commission (SEC), which oversees securities fraud, the justices may now be poised to limit the ability of private plaintiffs to enforce federal rules aimed at curbing corporate misconduct.

Andrew Feller, a former SEC lawyer now in private practice, said the Supreme Court’s recent track record of delivering business-friendly decisions that reduce the power of federal regulators suggests that Facebook and Nvidia might "find a receptive audience" before the justices.

The Supreme Court has 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,” Feller said.