Nvidia and Jensen Huang hit with first shareholder class action over his ties to an alleged Chinese spy
The Rosen Law Firm suit says Nvidia and Huang failed to disclose or misled investors about the affair; several other firms are investigating after the share drop.
Why it matters
The suit turns the Huang affair into a legal cost for Nvidia's shareholders as well as a security question for Washington. It claims Nvidia and Huang misled investors about the relationship, lied about it when asked and caused reputational harm after national security concerns were raised. Nvidia has said Megaspeed was no different from many other regional cloud customers. Other firms cite drops of 5.5% before the market opened and 8.8% during trading. Watch whether the suits are consolidated and how Nvidia's board inquiry answers them.
Key facts
- First class action filed by the Rosen Law Firm
- Defendants: Nvidia and CEO Jensen Huang
- Claim: investors were misled about Huang's affair with Alice Huang
- Other firms cite a 5.5% pre-market drop
- One firm cites an 8.8% intraday drop