Nvidia hit by lawsuit over Huang's relationship with suspected Chinese spy

A group of investors has filed a class-action lawsuit against the tech giant in California over alleged failures to disclose information about CEO Jensen Huang.

The lawsuit centers on his reported relationship with a woman US authorities believe may be a Chinese intelligence asset.

According to the lawsuit, Huang and Nvidia failed to disclose key national security concerns linked to the controversy, misleading shareholders and artificially inflating the company’s stock price.

Nvidia has brought in Wachtell, Lipton, Rosen & Katz to examine the allegations involving CEO Jensen Huang and assess potential risks to corporate secrets and national security.

The controversy has rattled investors. Nvidia shares dropped 4.3% on Monday and another 5.5% on Tuesday, erasing billions in market value.