On Monday, Nvidia and its CEO Jensen Huang faced a proposed class action lawsuit that alleges they deceived shareholders by hiding Huang’s connections to an alleged Chinese spy.
The complaint, lodged in a federal court in San Jose, California, claims that the defendants misrepresented facts concerning Huang’s supposedly inappropriate 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 the national security implications that could jeopardize Nvidia’s reputation and business opportunities.
Last month, The New York Times highlighted the alleged affair, stating that U.S. officials have determined that Alice Huang is an asset of Chinese intelligence.
Nvidia has not yet provided a comment regarding the lawsuit. Jensen Huang informed Nvidia employees of his infidelity towards his wife but did not share any specifics about the alleged affair.
Following the revelation of CEO Jensen Huang’s affair with a woman accused of espionage for China, Nvidia’s stock plummeted. Andrew Chang analyzes the implications of this scandal for the leading AI chip manufacturer.
Huang is a co-founder of Nvidia and has guided the company based in Santa Clara, California, to become the most valuable chipmaker globally, making him a notable figure in the artificial intelligence sector.
On Sunday, Nvidia announced it would investigate the situation. The company’s shares fell 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 initiate lawsuits following sudden declines in stock prices. Led by Mark Kistenmacher, Nvidia shareholders are pursuing unspecified damages from the defendants.
Kistenmacher intends to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026, which marks the period when The New York Times first reported on Huang’s connection to the alleged spy and when Nvidia announced it was investigating the foreign intelligence claim involving its CEO.