Nvidia and its CEO Jensen Huang were hit with a class action lawsuit on Monday, alleging that they misled shareholders by hiding Huang’s connections to a suspected Chinese spy.
The complaint, submitted in federal court in San Jose, California, claims that the defendants deceived investors regarding Huang’s purported relationship with Alice Huang, a former executive at Singapore’s Megaspeed, who is not related to him. It also asserts that they failed to reveal that the situation posed national security risks that could jeopardize Nvidia’s reputation and business opportunities.
Last month, The New York Times reported on the alleged relationship, indicating that U.S. officials had determined Alice Huang to be a potential Chinese intelligence asset.
Nvidia has not yet provided a response to requests for comments. Jensen Huang informed 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.
Huang, who co-founded Nvidia, has overseen the company as it rose to become the leading chipmaker globally, establishing him as a key figure in the artificial intelligence surge.
Nvidia announced an investigation into the situation on Sunday. On Monday, its shares declined by 4.3%, resulting in a loss of around $190 billion in market value. The lawsuit was lodged just five minutes after the U.S. stock market closed.
It is not uncommon for shareholders to initiate lawsuits against companies following sudden drops in stock prices. Led by Mark Kistenmacher, Nvidia shareholders are seeking damages that have not been specified. Kistenmacher aims to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026 — the period when The New York Times first detailed Huang’s encounter with the alleged spy and when Nvidia announced its investigation into the CEO being a target of foreign intelligence.