Nvidia, Jensen Huang face shareholder lawsuit alleging investors were misled about spy affair
The complaint comes after President Donald Trump said the FBI is investigating the affair, which Huang has acknowledged to and apologised for. Trump said Monday that Huang told him he had no idea the person could be involved in espionage.
A shareholder has filed a lawsuit against Nvidia and its CEO, Jensen Huang, alleging that the company misled investors about Huang's relationship with a woman suspected of working for Chinese intelligence. According to the complaint filed in a California court, Nvidia failed to disclose the affair and issued false statements about the company's relationship with the woman's company, which posed a material risk to Nvidia's reputation and business prospects.
The lawsuit seeks unspecified damages and class-action status for investors who purchased Nvidia shares between October 9 and November 8, when the affair was first reported by the New York Times and when the company announced it was investigating the reports. Shares of Nvidia, a leading technology company, dropped 4.3% following the lawsuit news, wiping out approximately $190 billion in market value.
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