Nvidia, Jensen Huang sued over alleged failure to disclose suspected China spy link

Nvidia and CEO Jensen Huang were sued in a proposed class action on Monday, alleging the company defrauded shareholders by concealing Huang's alleged relationship with a suspected Chinese spy. The lawsuit, filed in federal court in San Jose, California, claims the defendants misled shareholders about Huang's involvement with Alice Huang, a former executive of Singapore-based Megaspeed, and failed to disclose that the matter raised national security concerns.

The New York Times had previously reported on the alleged relationship, and US authorities concluded Alice Huang was a Chinese intelligence asset. Nvidia did not comment on the allegations. Huang had previously told Nvidia employees he had been unfaithful to his wife, without providing details of the relationship. The company announced a probe into the matter on Sunday, and its shares dropped 4.3% on Monday, reducing its market capitalization by approximately $190 billion.

The lawsuit was filed just minutes after the US stock market closed, and Nvidia shareholders led by Mark Kistenmacher are seeking unspecified damages.