Nvidia and its CEO Jensen Huang were hit with a proposed class action suit on Monday, alleging they misled shareholders by hiding Huang’s connections to an alleged Chinese spy.
The lawsuit, lodged in federal court in San Jose, California, claims that the defendants deceived investors regarding Huang’s purported involvement with Alice Huang, a former executive at Singapore’s Megaspeed who is not related to him. The complaint also asserts that they failed to reveal that this situation posed national security risks, potentially jeopardizing Nvidia’s business reputation and future.
Last month, The New York Times covered the alleged relationship, noting that U.S. officials had determined Alice Huang to be a Chinese intelligence operative.
Nvidia has yet to provide a response to the request for comment. Jensen Huang acknowledged to Nvidia’s staff that he had been unfaithful to his spouse but did not share specifics about 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.
As the co-founder of Nvidia, Huang has steered the Santa Clara, California-based firm to become the leading chipmaker globally, making him a prominent figure in the artificial intelligence sector.
Nvidia announced an investigation into the allegations on Sunday. Following this news, the company’s stock dropped by 4.3 percent on Monday, resulting in a loss of around $190 billion in market capitalization. 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 drops in stock prices. Mark Kistenmacher, leading the Nvidia shareholders, is seeking unspecified damages from the defendants.
Kistenmacher aims to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026—spanning from the time The New York Times first reported on Huang’s interaction with the alleged spy to when Nvidia announced its investigation into the foreign intelligence claims against its CEO.