Nvidia, CEO Huang sued over disclosures related to suspected Chinese spy

Nvidia and its CEO Jensen Huang are facing a proposed class action lawsuit for allegedly defrauding shareholders by concealing Huang's relationship with Alice Huang, a suspected Chinese intelligence asset. The lawsuit, filed in a federal court in San Jose, California, alleges that the defendants failed to disclose the national security concerns tied to Huang's alleged affair, which reportedly threatened Nvidia's reputation and business prospects.

Reuters reported that Nvidia announced a probe into the matter on Sunday, and the company's shares dropped 4.3% on Monday, reducing its market capitalization by approximately US$190 billion. The lawsuit was filed just five minutes after the US stock market closed, with Nvidia shareholders seeking unspecified damages.