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

Nvidia and CEO Jensen Huang were sued Monday in a proposed class action, accusing them of defrauding shareholders by concealing Huang's ties with a suspected Chinese spy. The lawsuit follows a significant drop in Nvidia's stock value. The complaint, filed in federal court in San Jose, California, alleges the defendants misled shareholders about Huang's alleged affair with Alice Huang, a former Megaspeed executive, and failed to disclose national security concerns threatening Nvidia's reputation. 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 Sunday, and its shares closed down 4.3% Monday, cutting market capitalization by about $190 billion. The lawsuit, seeking unspecified damages, was filed five minutes after market close, a common practice following unexpected share declines.