Nvidia Faces Class Action Lawsuit Over CEO's Ties to Alleged Chinese Spy

A proposed class action lawsuit was filed against Nvidia and CEO Jensen Huang, accusing them of misleading shareholders with false statements about Huang's relationship with alleged Chinese spy Alice Huang. The complaint seeks damages for a decline in Nvidia's stock value. Filed by Rosen Law Firm on November 9 in the Northern District of California, the suit cites a 4.27 percent stock drop following Huang's November 8 admission of infidelity. It quotes statements to The New York Times and Bloomberg where Huang described dealings with Megaspeed as "normal and not unusual." At least four other legal firms, including Schall, Brown & Schwartz and Levi & Korsinsky, announced investigations into whether Nvidia misled investors. The case follows a U.S. intelligence memo suggesting Alice Huang was recruited by China's Ministry of State Security.