Nvidia and CEO Jensen Huang Sued by Shareholders Over Alleged Hidden Affair
Shareholders sued Nvidia and CEO Jensen Huang in federal court in San Jose on Monday, accusing them of concealing his affair with an alleged Chinese spy. President Donald Trump says the FBI is investigating, while Huang says he will cooperate fully.
Nvidia and its chief executive, Jensen Huang, were sued by shareholders in federal court in San Jose, California, on Monday over claims they hid his affair with an alleged Chinese spy. The suit was filed five minutes after the US stock market closed.
It came the same day President Donald Trump said the FBI is investigating the affair.
What the lawsuit alleges
The complaint says Nvidia and Huang misled investors about his relationship with Alice Huang, a former executive of Singapore-based Megaspeed. She is not related to him. Shareholders say the companies failed to disclose that the matter raised national security concerns and threatened Nvidia's reputation and business prospects.
The proposed class action also alleges the company lied to the media about the relationship. It describes Alice Huang as someone "suspected of seeking to help smuggle Nvidia products to China."
The plaintiffs are led by Mark Kistenmacher, a retail investor. They seek unspecified damages. Shareholder suits are common after unexpected share price falls.
Shares fall, Nvidia investigates
Nvidia shares closed down 4.3% on Monday. The company said on Sunday it was running an independent investigation into reports that Huang was the "target of a foreign intelligence effort."
Nvidia also said it had no reason to believe its secrets or national security were compromised. It did not immediately respond to requests for comment on the lawsuit.
Huang told Nvidia employees he had been unfaithful to his wife but gave no details. Reports last month said US authorities had concluded Alice Huang, also known as Huang Le, was a Chinese intelligence asset.
Trump and Beijing respond
Trump told reporters he spoke to Huang by phone on Monday. "He said he had absolutely no idea that the person in question was a spy," Trump said, adding that he believes him.
At a White House briefing he said: "I know the FBI is looking into it in terms of something else, and I think that he'll be in good shape." He did not say when the investigation began. The FBI declined to comment.
Huang posted an open letter on Nvidia's website. "I support the investigation and will cooperate fully," he wrote.
China's foreign ministry rejected the claims, calling them "entirely groundless, speculative and intended to smear and malign China." Megaspeed has not commented.
Washington treats Nvidia's chip exports to China as a national security matter, which is a key reason the affair has drawn such scrutiny. Nvidia, which Huang co-founded in 1993, is valued at $4.3tn.
