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

Nvidia and its CEO, Jensen Huang, are facing a proposed class action lawsuit alleging that the company defrauded shareholders by concealing Huang's alleged affair with a suspected Chinese intelligence asset. According to the complaint filed in federal court in San Jose, California, Nvidia failed to disclose that the relationship raised national security concerns and could damage the company's reputation and business prospects.

The New York Times reported on the alleged relationship last month, and US authorities had concluded that Alice Huang, the woman involved, was a Chinese intelligence asset. Huang had previously informed Nvidia employees that he had been unfaithful to his wife without providing further details. The company announced an investigation into the matter on Sunday, and its shares dropped 4.3% on Monday, reducing Nvidia's market capitalization by approximately $190 billion.

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