Nvidia and Jensen Huang face shareholder class action in California

Shareholders have filed a class action lawsuit in California against Nvidia and CEO Jensen Huang, accusing them of fraud related to a Chinese espionage scandal. The case was filed in federal court in San Jose. The lawsuit alleges Nvidia and Huang misled shareholders by failing to disclose that an alleged relationship with Alice Huang raised national security concerns and threatened business prospects. The Information reports the affair allegedly facilitated shipments of Nvidia chips worth at least $7.5 billion to Chinese companies. Alice Huang, with her husband and sister, reportedly built a network of companies in China and Singapore to procure Nvidia chips. The scandal has impacted the $4.3 trillion company.