SCOTUS Grants Certiorari to Hear NVIDIA Fraud Appeal on PSLRA Pleading Standard

Last week, the United States Supreme Court granted certiorari in NVIDIA Corp. v. E. Ohman J:Or Fonder AB., Case No. 23-970, to address two fundamental questions about how federal securities fraud cases must be pled to survive a motion to dismiss—an issue that arises in nearly every such case. 

In order to properly state a claim for fraudulent misstatements or omissions under Section 10(b) of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 (“PSLRA”) requires plaintiffs, among other things, to: (1) plead “facts giving rise to a strong inference that the defendant acted with the required state of mind” (i.e., fraudulent intent); and (2) “state with particularity all facts” supporting a claim of falsity (i.e., demonstrate that the statement or omission at issue was, in fact, misleading).[1] 

The Supreme Court is set to weigh in on whether plaintiffs can meet the PSLRA’s pleading requirements for…