Nvidia Sued Over Jensen Huang’s Alleged Spy Affair
Nvidia was hit with a shareholder lawsuit Monday after its stock price tanked 5 percent amid reports CEO Jensen Huang had an affair with an alleged Chinese spy.
The lawsuit claims Huang’s failure to disclose the affair artificially inflated share prices, possibly violating federal securities laws. The lawsuit also contends the national security concerns raised by the allegations present a material risk to the company’s reputation and future business prospects.
The lawsuit notes the $4.3 trillion company’s stock fell $7.97 per share, or 4.27%, to close at $178.67 on Monday. This downturn, according to the lawsuit, could affect “hundreds or thousands” of shareholders.
“As a result of [Nvidia and Huang’s] wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” reads the lawsuit filed by the Rosen Law Firm in California federal court.
The litigation is the latest turn of events for Nvidia and Huang, who are facing new scrutiny in Washington surrounding the CEO’s involvement with Alice Huang, a businessperson associated with Singapore-based data center company Megaspeed.
Nvidia’s own investigation into the situation calls into question how closely the company is “tracking where its A.I. chips end up and highlights the possibility of American export laws easily being sidestepped,” the lawsuit alleges.
Nvidia did not immediately respond to a request for comment.
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