Shareholder Sues Nvidia and Jensen Huang Over Alleged Undisclosed Affair

A shareholder lawsuit filed in a California court accuses Nvidia and CEO Jensen Huang of misleading investors, according to the Associated Press report published by the Boston Globe. The complaint was filed Monday by retail investor Mark Kistenmacher and seeks class-action status for anyone who bought Nvidia shares from October 9 through November 8, AP reported. It seeks unspecified damages and a jury trial.

The suit alleges, as yet unproven, that Nvidia and Huang failed to disclose his relationship with Alice Huang, whom news reports say is suspected of working for Chinese intelligence. It also claims they made false statements about Nvidia’s relationship with her company, which allegedly posed a material risk to the company’s reputation and business prospects, AP said. October 9 is the date The New York Times first reported the affair.

Nvidia shares fell $7.97, or 4.3%, on Monday, erasing about $190 billion in market value, AP reported, and dropped further before Tuesday’s open. The decline followed Nvidia’s November 8 statement that its board was investigating reports that Huang was the target of a foreign intelligence effort, an issue covered separately.

CBS News reported that the Rosen Law Firm filed a class action in a federal court in San Jose, California, and that Huang admitted in a message to employees that he had been unfaithful to his wife. Nvidia did not immediately comment to AP. The allegations have not been tested in court.

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Sources:

• Boston Globe (AP): Nvidia and Jensen Huang face shareholder lawsuit alleging investors were misled

• CBS News: Nvidia, CEO Jensen Huang face shareholder suit over his affair with alleged Chinese spy