Nvidia CEO Jensen Huang is facing a proposed class-action lawsuit from shareholders alleging he misled investors about his relationship with a woman U.S. intelligence officials suspect was a Chinese spy. The lawsuit claims Huang's failure to disclose the affair artificially inflated Nvidia's stock price and created national security risks.
Lawsuit Alleges Cover-Up and Market Manipulation
The lawsuit, filed Monday in San Jose by shareholder Mark Kistenmacher through the Rosen Law Firm, accuses Huang and Nvidia of making misleading statements that concealed his affair with Alice Huang (no relation). She is a former executive at Singapore-based Megaspeed, a Nvidia client. According to the complaint, the revelations caused a 4% drop in Nvidia's share price, damaging investors.
National Security Concerns Emerge
The scandal escalated when Nvidia's board announced an internal investigation Sunday following reports from The New York Times that U.S. intelligence had evidence Alice Huang was "feeding information directly to Beijing." Nvidia's cutting-edge chips are considered strategically vital, with the U.S. already restricting their sale to China over espionage fears.
Huang Admits Infidelity But Denies Spy Knowledge
Huang admitted Sunday to being "unfaithful" to his wife Lori in a public apology but stopped short of addressing spy allegations. Last month, he told Bloomberg his relationship with Alice Huang was purely business-related. Former President Donald Trump, a Huang ally, defended the CEO at an impromptu press briefing, saying he believed Huang's claim of ignorance about the alleged espionage.
Nvidia shares closed down sharply Monday as the scandal unfolds amid heightened U.S.-China tech tensions.
Source: www.dailywire.com โ https://www.dailywire.com/news/americas-top-chip-boss-faces-lawsuit-as-spy-scandal-rattles-nvidia