Nvidia, Jensen Huang sued over disclosures related to CEO's alleged affair
Nvidia and Chief Executive Jensen Huang have been sued in a proposed class action accusing them of defrauding shareholders by concealing Huang's ties with a suspected Chinese spy.
Nvidia, led by CEO Jensen Huang, is facing a lawsuit from shareholders who claim the company misled them regarding Huang's alleged affair with Alice Huang, a former executive from a Singapore-based company. The lawsuit asserts that Nvidia failed to disclose that the relationship raised national security concerns, potentially damaging the company's reputation and business prospects.
The New York Times reported on the alleged relationship last month, noting that US authorities considered Alice Huang to be a Chinese intelligence asset. Despite Huang's admission to Nvidia employees about his infidelity, the company did not provide further details about the relationship. In response to the lawsuit, Nvidia announced an internal investigation.
The company's stock price dropped by 4.3% following the news, resulting in a market capitalization reduction of around US$190 billion. The plaintiffs, led by Mark Kistenmacher, are seeking unspecified damages from the defendants.
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