Nvidia and CEO Jensen Huang sued over undisclosed 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 New York Times report on the alleged relationship. Filed in federal court in San Jose, California, the complaint claims 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. Nvidia announced a probe Sunday, and its shares fell 4.3 percent Monday, cutting market value by about $190 billion. The lawsuit, filed five minutes after market close, seeks unspecified damages led by shareholder Mark Kistenmacher. Jensen Huang, who co-founded Nvidia, told employees he was unfaithful to his wife without detailing the alleged relationship. Nvidia did not immediately respond to a comment request.