Nvidia and Jensen Huang face shareholder lawsuit over alleged disclosures

Technology · First reported 9 Nov, 22:05 · Updated 22:49

A proposed shareholder class action alleges Nvidia and CEO Jensen Huang concealed information about Huang’s alleged ties to Alice Huang, whom US authorities reportedly suspect of being a Chinese intelligence asset. Nvidia’s board has opened an investigation; the company’s shares fell 4.3% on Monday, according to the reports.

The proposed class action accuses Nvidia and Jensen Huang of misleading shareholders by not disclosing alleged ties between Huang and Alice Huang, a former Megaspeed executive.
Nvidia’s board has launched an investigation; it said it had no reason to believe national security or confidential company information had been compromised.
Nvidia shares closed down 4.3% on Monday, and the suit seeks unspecified damages.

Summary written by Sumzly from 2 articles

Key facts

Lawsuit: Proposed shareholder class action against Nvidia and Jensen Huang; plaintiffs seek unspecified damages.
Filing location: Federal court in San Jose, California.
Board response: Nvidia’s board launched an investigation and said it had no reason to believe national security or confidential company information had been compromised.
Share movement: Nvidia shares closed down 4.3% on Monday; the centre report estimates a market-capitalisation decline of about US$190 billion.
China’s response: China’s Foreign Ministry rejected the allegations as baseless.