Nvidia and its CEO Jensen Huang faced a class action lawsuit on Monday, alleging they deceived shareholders by hiding Huang’s connections to an alleged Chinese spy.
A complaint lodged in federal court in San Jose, California, claims the defendants misrepresented Huang’s purported relationship with Alice Huang, a former executive at Singapore’s Megaspeed, who is not related to him. The lawsuit asserts that they failed to inform shareholders about the national security implications of the situation, which jeopardized Nvidia’s reputation and future business opportunities.
Last month, The New York Times reported on the alleged relationship, noting that U.S. officials had determined Alice Huang to be linked to Chinese intelligence.
Nvidia has not yet responded to a request for comments. Jensen Huang acknowledged to Nvidia employees that he had been unfaithful to his wife, although he 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 guided the Santa Clara, California-based firm to become the leading chipmaker globally, establishing him as a key figure in the artificial intelligence sector.
Nvidia declared it would investigate the situation on Sunday. On Monday, its shares fell by 4.3%, resulting in a market capitalization loss of about $190 billion. The lawsuit was submitted just five minutes after the U.S. stock market closed.
It is not unusual for shareholders to file lawsuits against companies following unexpected declines in share prices. Led by Mark Kistenmacher, Nvidia shareholders are seeking unspecified damages from the accused parties.
Kistenmacher aims to represent all individuals who purchased Nvidia shares between October 9, 2025, and November 8, 2026—spanning the period when The New York Times first reported on Huang’s alleged meeting with the supposed spy and when Nvidia announced it was investigating claims of its CEO being targeted by foreign intelligence.