Nvidia shareholders sue company and Jensen Huang over alleged risk omission

Nvidia shareholders sued the company and its CEO, Jensen Huang, accusing Nvidia of omitting regulatory, commercial and national-security risks tied to the executive’s alleged extramarital relationship with Alice Huang, a former Megaspeed executive. The g1 reported that The New York Times had reported in October that the relationship allegedly took place; Huang admitted only that he had been unfaithful to his wife. The class action, filed in a federal court in San Jose, California, says the omissions helped artificially inflate the stock price. After the investigation was disclosed, Nvidia shares fell 4.3%, reducing the company’s market value by about US$190 billion, according to g1.

Nvidia itself created an independent committee to determine whether Huang may have been targeted in a foreign intelligence operation and whether company or US information was exposed. The company says it has found no reason to believe trade secrets were compromised, while Huang says he will cooperate with the investigation.