Nvidia and its CEO Jensen Huang were hit with a proposed class action lawsuit on Monday, alleging that they deceived shareholders by hiding Huang’s connections to a suspected Chinese spy.
The complaint, submitted in federal court in San Jose, California, claims that the defendants misrepresented facts regarding Huang’s alleged relationship with Alice Huang, a former executive of Megaspeed, a Singapore-based company, who is not related to him. Additionally, it asserts that they failed to reveal that the situation posed national security risks that could jeopardize Nvidia’s reputation and business future.
Last month, The New York Times reported on the purported relationship, indicating that U.S. officials had determined that Alice Huang was linked to Chinese intelligence.
Nvidia did not provide an immediate response to requests for comment. Jensen Huang informed employees at Nvidia that he had been unfaithful to his spouse but did not elaborate on the specifics of the alleged affair.
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.
Jensen Huang, who co-founded Nvidia, has steered the Silicon Valley company to become the leading chipmaker globally, turning him into a key figure in the artificial intelligence sector.
Nvidia initiated an investigation into the allegations on Sunday. On Monday, its stock fell by 4.3 percent, leading to a decrease of about $190 billion in Nvidia’s market value. The lawsuit was filed just five minutes after the U.S. stock market closed.
It is not unusual for shareholders to pursue legal action against companies following sudden drops in stock value. Led by Mark Kistenmacher, Nvidia shareholders are seeking unspecified damages from the defendants.
Kistenmacher aims to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026 — the timeframe when The New York Times first reported on Huang’s connection with the alleged spy and when Nvidia announced it was conducting an inquiry regarding its CEO being targeted by foreign intelligence.