Nvidia board faces scrutiny over CEO affair scandal

Nvidia CEO Jensen Huang faces potential legal liability over his admitted affair with a woman suspected of being a Chinese intelligence asset, with an FBI probe, a proposed investor class action, and possible SEC scrutiny underway. The company's independent directors have hired law firm Wachtell, Lipton to review the matter, while a class action filed Monday alleges Huang and Nvidia concealed the relationship, defrauding shareholders as the stock lost about 20% of its value. Federal securities regulators could also investigate for false disclosures, with a lower burden of proof than private lawsuits. Huang has not been accused of criminal wrongdoing, and Nvidia says no national security or company secrets were affected. If the board failed to monitor risks, directors could face shareholder suits, while criminal charges would require proof Huang intentionally misled investors or knew of the alleged intelligence connection.