Nvidia hit with shareholder lawsuit after $190bn market value wipeout
Nvidia and chief executive Jensen Huang have been hit with a shareholder class-action lawsuit alleging they concealed his relationship with a suspected Chinese spy, after the chipmaker shed around $190bn (£145bn) in market value on Monday. The proposed lawsuit, filed in a federal court in San Jose, California, accuses the AI giant and its founder [...]
Nvidia CEO Jensen Huang and the company are facing a class-action lawsuit from shareholders alleging they concealed a relationship between Huang and a Chinese intelligence asset. The proposed lawsuit, filed in a California federal court, claims Nvidia failed to disclose potential national security risks tied to Huang's affair. Shares in Nvidia dropped 4.3% to $178.67 on Monday after sliding nearly 9% earlier in the day due to the scandal.
The lawsuit, brought by Mark Kistenmacher through the Rosen Law Firm, seeks unspecified damages from investors who bought Nvidia stock between October 9, 2025 and November 8, 2026. The plaintiffs argue Nvidia's statements about its dealings with Singapore-based data centre company Megaspeed were misleading because they omitted Huang's relationship with former executive Alice Huang, who US intelligence officials identified as a Chinese intelligence asset, though China denies the spying claims.
Huang admitted to being unfaithful to his wife, admitting his actions had hurt her and their children, and apologized. Nvidia's board is investigating whether Huang was targeted by a foreign intelligence operation, but the company maintains it had no reason to believe confidential information or national security was compromised.
Donald Trump announced that the FBI is also probing the scandal, though he defended Huang, stating he believed the executive was unaware of the woman's alleged spy connections.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
