Nvidia and CEO Jensen Huang face lawsuit over handling of ties to alleged
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Nvidia and chief executive Jensen Huang were sued on Monday in a proposed class action accusing them of defrauding shareholders by concealing Huang’s ties with a suspected Chinese spy.
According to a complaint filed in federal court in San Jose, Calif., the defendants misled shareholders about Huang’s alleged affair with Alice Huang, a former executive of Singapore-based Megaspeed who is not related to him, and did not disclose that the matter raised national security concerns that threatened Nvidia’s reputation and business prospects.
The New York Times reported last month about the alleged relationship and that U.S. authorities had concluded Alice Huang was a Chinese intelligence asset.
Nvidia did not immediately respond to a request for comment. Jensen Huang told Nvidia’s employees he had been unfaithful to his wife, without disclosing details of the alleged relationship.
U.S. tech giant Nvidia’s shares tumbled after CEO Jensen Huang admitted to an affair with a woman accused of spying for Beijing. Andrew Chang breaks down what we know so far and what the scandal means for the world’s most valuable AI chipmaker.
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He co-founded Nvidia, and has led the Santa Clara, Calif.-based company as it became the world’s most valuable chipmaker and made him one of the world’s most prominent symbols of the artificial intelligence boom.
Nvidia announced a probe into the matter on Sunday. Its shares closed down 4.3 per cent on Monday, reducing Nvidia’s market capitalization by approximately $190 billion US. The lawsuit was filed five minutes after the U.S. stock market closed.
It is common for shareholders to sue companies after unexpected share price declines. Nvidia shareholders led by Mark Kistenmacher are seeking unspecified damages from the defendants.
Kistenmacher seeks to represent anyone who bought shares of Nvidia between Oct. 9, 2025, and Nov. 8, 2026 — when the New York Times first reported about Huang’s meeting with the supposed spy, and when Nvidia said it was launching an investigation regarding its CEO being the target of a foreign intelligence effort.
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