Shareholders sued Nvidia and its CEO Jensen Huang for his betrayal. According to Reuters, shareholders accuse the company of concealing information about Huang's relationship with a woman who US intelligence agencies consider to be an informant for Chinese intelligence.
According to the complaint, filed in federal court in San Jose, California, the defendants misled shareholders about Huang's alleged relationship with Alice Huang and failed to disclose that the matter raised national security concerns that threatened Nvidia's reputation and business prospects.
Earlier, the New York Times stated that entrepreneur Alice Huang had a close relationship with the head of Nvidia and was allegedly a source of information for Chinese government agencies. The head of Nvidia admitted to an extramarital affair, and the company announced the launch of an independent investigation.
Chinese Foreign Ministry spokesman Guo Jiakun said on November 9 that "accusations of so-called Chinese espionage" in the Nvidia chief's case are completely unfounded. However, Nvidia shares fell nearly 9% during the day amid the scandal.