Nvidia and its CEO, Jensen Huang, faced legal action on Monday in a proposed class action lawsuit, alleging that they deceived shareholders by hiding Huang’s connections to a suspected Chinese spy.
A complaint lodged in federal court in San Jose, California, claims that the defendants misrepresented facts regarding Huang’s purported relationship with Alice Huang, a former executive from Singapore’s Megaspeed, who is not related to him. Furthermore, they allegedly failed to reveal that this situation raised national security alarms that could jeopardize Nvidia’s reputation and business outlook.
Last month, The New York Times published a report detailing the alleged affair and indicated that U.S. officials had determined that Alice Huang was a Chinese intelligence asset.
Nvidia has not yet responded to inquiries for comments. Jensen Huang informed Nvidia’s workforce that he had been unfaithful to his spouse but did not provide 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 co-founded Nvidia and has steered the Santa Clara, California-based firm to become the leading chipmaker globally, making him a significant figure in the artificial intelligence sector.
On Sunday, Nvidia announced it was launching an investigation into the situation. Following this news, Nvidia’s stock decreased by 4.3 percent on Monday, resulting in a loss of approximately $190 billion in market capitalization. The lawsuit was submitted just five minutes after the U.S. stock market closed.
It is not unusual for shareholders to initiate lawsuits against companies following unforeseen drops in share prices. Nvidia shareholders, represented by Mark Kistenmacher, are pursuing unspecified damages from the defendants.
Kistenmacher aims to represent anyone who purchased Nvidia shares between October 9, 2025, and November 8, 2026— the period when the New York Times first disclosed Huang’s meeting with the alleged spy and when Nvidia announced it was investigating claims regarding its CEO being targeted by foreign intelligence.