Shareholders have sued Nvidia and its CEO Jensen Huang, accusing them of misleading investors about the company chief’s relationship with a woman suspected of ties to Chinese intelligence. Donald Trump said the FBI is handling the matter.
Class Action in California
The class action was filed on Monday, November 9, in federal court in California, after the stock market closed. It was brought by the US law firm Rosen Law Firm. The plaintiffs claim that Nvidia and Huang failed to disclose to investors information about the CEO’s relationship with Alice Huang, a former manager at the Singapore-based company Megaspeed, which allegedly passed information to Beijing. The woman is not related to Nvidia’s CEO.
The lawsuit states that the misleading statements “artificially inflated” the share price, and that investors suffered losses when the matter came to light. The plaintiffs also point out that the relationship raised concerns in national security circles, which could have posed a significant risk to the company’s reputation and business. According to media reports, Huang admitted to employees that he had cheated on his wife, but it was not disclosed that the matter had a national security dimension.
These are the plaintiffs’ allegations; the court has not ruled on them, and the lawsuit is not evidence of guilt.
Board Examines Whether Huang Was a Target of Foreign Intelligence
On Monday, Nvidia said its board is conducting an independent investigation to determine whether the CEO was the target of foreign intelligence operations. The company’s shares fell by more than 4% that day, and about $190 billion was wiped off its value, which is estimated at around $4.3 trillion. Earlier, in October, the “New York Times” reported that US authorities had concluded Alice Huang was linked to Chinese intelligence.
Trump: FBI Is Looking at “Something Else”
President Donald Trump said on Monday that the FBI is dealing with the matter. His comment was quoted as saying: “I know the FBI is looking at this in the context of something else, and I think he’ll be in good shape”. Trump also reported that he had spoken with Huang, who reportedly denied knowing about the woman’s espionage ties. Huang is regarded as an informal technology adviser to the president.
As of publication, the FBI has not made a public statement on the matter, and no criminal charges have been brought against anyone.
The story is unfolding on several fronts at once: the court, the FBI, the board’s internal investigation, and congressional inquiries. Reuters reported on Tuesday morning that in Huang’s native Taiwan, he evokes both sympathy and disbelief.
