A California court received a class‑action complaint on Monday alleging that Nvidia Corp. and its chief executive Jensen Huang deceived shareholders about a personal affair that may have compromised the company’s national‑security interests.
Allegations and background
The plaintiff, retail investor Mark Kistenmacher, claims Nvidia failed to disclose Huang’s relationship with Alice Huang, who is suspected of helping smuggle Nvidia products to China. The complaint says the company issued statements that the relationship with Alice’s Singapore‑based firm Megaspeed posed no material risk, even though the affair was ongoing.
According to the filing, the alleged misconduct began after The New York Times reported on October 9 that Huang and Alice Huang were seen socializing in Taiwan. The suit seeks unspecified damages and a jury trial on behalf of anyone who bought Nvidia shares between that date and November 8, when Nvidia announced it was investigating reports that Huang was the target of a foreign‑intelligence effort.
Impact on Nvidia’s market value
Following the filing, Nvidia’s stock fell $7.97, or 4.3%, wiping out roughly $190 billion in market value. Shares were down again the next morning before the opening bell.
The complaint argues that, had investors known the full truth, they would not have purchased Nvidia shares at the “artificially inflated” prices.
Government response
President Trump, who said the FBI is looking into the affair, told reporters that Huang told him he had no idea the woman could be involved in espionage and added that Huang “will be in good shape.” Top Democrats, including Sen. Mark Warner and Rep. Hakeem Jeffries, have expressed interest in further congressional scrutiny.
Company’s stance
Nvidia has not responded to a request for comment. In an open letter posted on the company’s website, Huang apologized to his wife, family, and employees, stating, “I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security.”
Original reporting: WLKY Louisville — read the source article.
