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

Nvidia and its CEO Jensen Huang faced a proposed class action lawsuit on Monday, alleging they defrauded shareholders by hiding Huang's connection to a suspected Chinese spy. The complaint, filed in federal court in San Jose, California, claims the company misled shareholders about Huang's alleged extramarital affair 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 recently reported on the alleged relationship and that US authorities concluded Alice Huang was a Chinese intelligence asset.

Jensen Huang, who co-founded Nvidia and led the company to become the world's most valuable chipmaker, was reportedly unfaithful to his wife, though he did not disclose details of the alleged relationship during the company meeting. Nvidia announced an internal investigation into the matter on Sunday, and its shares fell 4.3% on Monday, reducing the company's market capitalization by approximately $190 billion.

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