Nvidia, CEO Jensen Huang face shareholder suit over affair
Summary
Shareholders sued Nvidia and CEO Jensen Huang, alleging they failed to disclose information about Huang’s relationship with Alice Huang and related national security concerns. Nvidia says it has opened an independent investigation, while the Justice Department is investigating Megaspeed over possible violations of U.S. export restrictions on advanced AI chips.Key Facts
- The Rosen Law Firm filed the proposed class-action lawsuit in federal court in San Jose, California.
- The lawsuit alleges that Nvidia and Huang misled shareholders and that their statements artificially inflated Nvidia’s share price.
- The New York Times reported that Huang had a close relationship with Alice Huang, an executive linked to Megaspeed.
- Alice Huang is not related to Jensen Huang, according to the article.
- Megaspeed buys AI chips from Nvidia.
- Two law enforcement sources told CBS News that the Justice Department’s National Security Division is investigating Megaspeed over potential violations of U.S. export restrictions.
- Nvidia said it launched an independent investigation of Huang after reports that he had been targeted in a foreign intelligence effort.
- Huang told Nvidia employees that he had been unfaithful to his wife and apologized to her and their children.
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