A class-action lawsuit has been filed against Nvidia and its Chief Executive Officer, Jensen Huang, in a California federal court, accusing them of defrauding shareholders. The complaint, filed on Monday by retail investor Mark Kistenmacher, alleges that Nvidia and Huang failed to disclose information about Huang's alleged affair with Alice Huang, a former executive at Singapore-based Megaspeed, who U.S. authorities reportedly concluded was a Chinese intelligence asset. The lawsuit asserts that this omission and other statements about Nvidia's dealings with Megaspeed misled investors, artificially inflating the company's share price.
The legal action comes amidst broader scrutiny, including an independent investigation launched by Nvidia's board on Sunday into reports that Huang was "the target of a foreign intelligence effort." This internal probe followed a New York Times report last month detailing Huang's relationship with Alice Huang. On Monday, President Donald Trump confirmed that the FBI is also investigating Huang's affair, though he stated he believes Huang had no knowledge of the woman's alleged espionage activities. China's Ministry of Foreign Affairs has denied the spying allegations, calling them unsubstantiated smears.
The lawsuit seeks unspecified damages for investors who purchased Nvidia stock between October 9, 2025, and November 8, 2026. This period spans from when news of the affair reportedly surfaced to the day Nvidia announced its internal investigation. Nvidia's shares fell 4.3% on Monday, reducing the company's market capitalization by approximately $190 billion. The complaint argues that shareholders suffered significant losses due to the precipitous decline in the market value of Nvidia's securities.
Jensen Huang, who co-founded Nvidia in 1993, publicly acknowledged his infidelity in a message to Nvidia employees released on Sunday, apologizing to his wife and children. He did not, however, disclose details of the alleged relationship. Huang also stated his commitment to cooperating fully with the investigation and protecting Nvidia and national security.
The lawsuit specifically points to statements made by Huang and an Nvidia spokesperson to news outlets, describing the company's dealings with Megaspeed as "normal and not unusual." The complaint alleges these statements were misleading given Huang's undisclosed relationship with Alice Huang and her suspected role in attempting to circumvent U.S. export restrictions on AI chips to China. The Justice Department's National Security Division is reportedly investigating Megaspeed for potential violations of these export restrictions.
Nvidia and Megaspeed have not yet publicly commented on the lawsuit. The ongoing investigations by Nvidia's board, the FBI, and the class-action lawsuit place significant pressure on the world's most valuable chipmaker and its prominent CEO.