Nvidia and CEO Jensen Huang Sued Over Alleged Concealment of Chinese Spy Ties

Nvidia and CEO Jensen Huang were sued on Monday over allegations the company defrauded shareholders by concealing Huang’s ties to a suspected Chinese spy, according to a federal complaint filed in San Jose, California. The lawsuit claims Nvidia misled investors about Huang’s alleged affair with Alice Huang, a former executive at customer Megaspeed, and failed to disclose national security concerns that threatened the company’s reputation. Nvidia shares plunged 4.3 percent on November 9, wiping out about $190 billion in market value. Huang’s net worth fell by $7.4 billion in early trading on November 10, dropping him from eighth to 10th on Forbes’ billionaires list. Nvidia’s board has launched an independent investigation into the alleged foreign intelligence attempt, while expressing confidence in Huang’s leadership.