ANKARA: US chipmaker Nvidia and its CEO, Jensen Huang, face a shareholder class-action lawsuit alleging they misled investors by failing to disclose Huang's alleged relationship with a former Megaspeed executive, according to court documents filed Monday (Nov 10).
The legal action follows an announcement by Nvidia's board of directors on Sunday (Nov 8) launching an independent investigation into Huang after reports surfaced alleging he was targeted by foreign intelligence operations, Anadolu Ajansi reported.
The complaint, submitted to the US District Court for the Northern District of California, accuses Nvidia and Huang of violating provisions of the Securities Exchange Act of 1934.
According to the complaint filed by shareholder Mark Kistenmacher and represented by The Rosen Law Firm, the proposed class covers investors who purchased or otherwise acquired Nvidia securities between Oct 9, 2025, and Nov 8, 2026.
The filing argues that Nvidia's statements that a review found no evidence of its chips being diverted elsewhere, alongside Huang's characterisation of the company's dealings with Singapore-based Megaspeed International as "normal", were materially misleading.
The plaintiff alleges that these statements failed to disclose Huang's alleged personal relationship with Alice Huang, a former Megaspeed executive suspected of gathering intelligence on behalf of China.
The complaint argues that Nvidia and Huang withheld information about national security concerns that could threaten the company's reputation and future business prospects.
The plaintiff also alleges that the defendants' statements and omissions artificially inflated Nvidia's share price during the proposed class period.
The court document notes that Nvidia shares on Monday fell 4.27% to close the day at $178.67 following the revelations, and the plaintiff is seeking unspecified compensatory damages on behalf of affected investors.
The New York Times and Financial Times reported allegations that Alice Huang had worked for Chinese intelligence.
The allegations have drawn scrutiny to the Nvidia chief’s personal relationship and its potential implications for the company.
China rejected the accusations Monday, with Foreign Ministry spokesperson Guo Jiakun describing the Chinese spy allegations as baseless speculation. — Bernama-Anadolu
