Nvidia and CEO Huang sued over alleged ties to suspected Chinese spy

Nvidia and CEO Jensen Huang were sued in a proposed class action on Monday, accused of defrauding shareholders by concealing Huang's ties to a suspected Chinese spy, causing shares to drop 4.3 percent. The federal lawsuit in San Jose alleges the defendants hid Huang's affair with Alice Huang, a former Megaspeed executive, and failed to disclose national security concerns that threatened Nvidia's reputation and business. The New York Times reported last month that US authorities concluded Alice Huang was a Chinese intelligence asset. Nvidia announced a probe into the matter on Sunday, and shares closed down 4.3 percent on Monday, reducing market capitalization by about $190 billion. Shareholder Mark Kistenmacher seeks unspecified damages, with the lawsuit filed after market close.