Nvidia and Huang face lawsuit alleging investors were misled about spy affair
Summary
A Nvidia shareholder sued the company and CEO Jensen Huang, alleging they misled investors about Huang’s relationship with Alice Huang and concerns involving her company, Megaspeed. The lawsuit seeks unspecified damages and comes as U.S. officials and Nvidia’s board examine reports of possible espionage and efforts to evade export restrictions; the allegations have not been established in court.Key Facts
- Retail investor Mark Kistenmacher filed the proposed class-action lawsuit in a California court on Monday.
- The complaint alleges Nvidia and Jensen Huang failed to disclose his affair with Alice Huang and made misleading statements about Nvidia’s relationship with Megaspeed.
- News reports cited in the article say U.S. intelligence suspected Alice Huang of gathering information for Beijing and that the Commerce Department was investigating Megaspeed over possible evasion of export restrictions.
- Nvidia had said its compliance team checked Megaspeed and found no illegal activity, according to the article.
- The proposed class covers people who bought Nvidia shares from October 9 through November 8, when Nvidia said it was investigating reports that Huang was the target of a foreign intelligence effort.
- Nvidia shares fell 4.3% on Monday, reducing the company’s market value by about $190 billion, and fell again before Tuesday’s market open.
- President Donald Trump said the FBI was looking into the matter and that Huang told him he did not know Alice Huang could be involved in espionage.
- Jensen Huang apologized to his wife, family, and Nvidia, and said he would cooperate with the investigation.
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