In a surprising turn of events, a group of Nvidia shareholders has filed a federal lawsuit in San Jose, California, accusing the company and its chief executive, Jensen Huang, of defrauding investors by concealing an alleged affair with a former Singaporean executive, Alice Huang. The lawsuit claims that the relationship, which has been linked to national security concerns, was not disclosed to shareholders, potentially impacting Nvidia’s reputation and business prospects.
The complaint, filed just minutes after the U.S. stock market closed, alleges that both Nvidia and Huang misled investors by failing to reveal the nature of the relationship. Alice Huang, who previously worked for Megaspeed in Singapore, is reportedly identified by U.S. authorities as a Chinese intelligence asset, according to a New York Times report last month.
Jensen Huang, who co‑founded Nvidia in 1993, has been a prominent figure in the artificial intelligence boom, guiding the company to become the world’s most valuable chipmaker. In a recent internal memo, Huang told employees that he had been unfaithful to his wife, but he did not disclose details of the alleged affair.
Following the lawsuit, Nvidia announced that it was conducting an independent investigation into reports that Huang was the target of a foreign intelligence effort. The company’s shares fell 4.3% on Monday, wiping out roughly $190 billion in market value.
Shareholder Mark Kistenmacher, a retail investor, led the legal action, seeking unspecified damages. The lawsuit reflects a common practice among investors to pursue legal remedies after unexpected share price declines.
In a separate development, former President Donald Trump publicly stated that the FBI was investigating Huang’s affair, but he expressed confidence that the CEO would not face serious consequences. “I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape,” Trump said at a White House briefing.
While Nvidia has not yet responded to Reuters’ request for comment, the lawsuit underscores the growing scrutiny of corporate leaders’ personal conduct and its potential impact on national security and shareholder value.
Source: The Guardian World
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