Nvidia's CEO claimed that the China spying scandal is prompting a shareholder lawsuit and FBI scrutiny.
A class-action complaint, filed in California court by investor Mark Kistenmacher, seeks unspecified damages on behalf of shareholders who bought Nvidia stock between October 9, 2025 and November 8, 2026.
The shareholder suit alleges Nvidia and CEO Jensen Huang misled investors about Huang's relationship with a woman accused of working for Chinese intelligence and the potential national security risks surrounding the company's chip exports.
The complaint hinges on reports that Alice Huang, a former executive at Singapore-based Mega Speed International, may be helping to circumvent US restrictions on Nvidia chip exports to China.
Nvidia previously said its compliance team had reviewed MegaSpeed and found no evidence of illegal activity.
The lawsuit claims those promises were misleading because Jensen Huang had an undisclosed relationship with Alice Huang.
Nvidia's independent directors hired the law firm of Wachtel, Lipton, Rosen & Katz to conduct an independent investigation.
The dispute occurred at the same time as a sharp sell-off in the company's shares: Nvidia shed about $190 billion of market value on November 9.