10.11.2026 05:50
A lawsuit was filed in California against US chip giant Nvidia and its CEO Jensen Huang, alleging that investors were misled by the non-disclosure of the relationship with Alice Huang, who is alleged to have gathered intelligence on behalf of China. While the plaintiffs seek compensation for investor losses, Nvidia shares had fallen 4.27% on November 9 following the allegations.
A lawsuit has been filed against US chipmaker Nvidia and the company's Chief Executive Officer (CEO) Jensen Huang, alleging that they misled investors by failing to disclose Huang's relationship with Alice Huang, a former executive of Singapore-based Megaspeed, who is alleged to have gathered intelligence on behalf of China.
In the complaint filed with the US District Court for the Northern District of California, it was alleged that Nvidia and Huang misled investors by violating relevant provisions of the Securities Exchange Act of 1934.
ALLEGATION OF MISLEADING STATEMENTS ABOUT MEGASPEED
The complaint argued that Nvidia's statements that there was no evidence that its chips had been diverted to China, as well as Jensen Huang's statements that his business relationships with Megaspeed were "normal," were misleading. It was asserted that these statements did not reflect the truth because Jensen Huang failed to disclose his relationship with Alice Huang, who is suspected of spying on behalf of China.
The plaintiff argued that, through the statements in question, Nvidia and Huang failed to disclose information that could give rise to national security concerns threatening the company's reputation and future commercial prospects, and sought compensation for the losses incurred by investors.
BOARD OF DIRECTORS HAD LAUNCHED AN INVESTIGATION
In a statement on November 8, Nvidia's Board of Directors announced that an independent investigation had been launched following reports that Huang was the target of foreign intelligence activity.
The investigation had been initiated following reports that Huang had a close relationship with a Chinese businessperson alleged to have passed information to the Beijing government.
In reports published in The New York Times, it was alleged that Alice Huang, a former executive of Megaspeed who was said to have a close relationship with Huang, acted on behalf of Chinese intelligence and passed information to the Beijing government.
Nvidia CEO Jensen Huang, in a message sent to employees, stated that he had not remained faithful to his wife and said that he supported the independent investigation launched by the company's Board of Directors and would fully cooperate. Huang said, "I am determined to protect Nvidia and support the national security of the United States."
Following these developments, Nvidia shares lost 4.27 percent on November 9, closing the day at $178.67.