Nvidia and its CEO Jensen Huang were hit with a proposed class action lawsuit on Monday, alleging that they misled shareholders by hiding Huang’s connections to a suspected Chinese spy.
A complaint lodged in federal court in San Jose, California, claims that the defendants provided inaccurate information to shareholders about Huang’s purported relationship with Alice Huang, a former executive at Singapore-based Megaspeed, who is not related to him. Furthermore, they allegedly failed to reveal that the situation raised national security issues, jeopardizing Nvidia’s reputation and business outlook.
Last month, The New York Times reported on the alleged affair and noted that U.S. officials had determined Alice Huang to be a Chinese intelligence asset.
Nvidia has not yet responded to requests for comments. Jensen Huang informed Nvidia’s staff about his infidelity but did not provide specifics regarding 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.
Huang, who co-founded Nvidia, has steered the company based in Santa Clara, California, to become the foremost chipmaker globally, turning him into a notable figure in the artificial intelligence sector.
Nvidia announced on Sunday that it would investigate the situation. Following the news, its shares fell by 4.3 percent on Monday, leading to a market capitalization decrease of nearly $190 billion USD. The lawsuit was filed just five minutes after the U.S. stock market closed.
It is not unusual for shareholders to file lawsuits against companies following unexpected declines in share prices. Nvidia shareholders, led by Mark Kistenmacher, are pursuing unspecified damages from the defendants.
Kistenmacher aims to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026, which marks the period when The New York Times first reported on Huang’s encounter with the alleged spy and when Nvidia announced the initiation of an investigation regarding its CEO being targeted by foreign intelligence.