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“Nvidia” and its chief executive, Jensen Huang, face a shareholder class action lawsuit alleging they misled investors by failing to disclose Huang’s alleged relationship with a former “Megaspeed International” executive, according to court documents filed Monday and reported by Anadolu Agency.
The lawsuit followed an announcement by “Nvidia’s” board of directors on Sunday that it had launched an independent investigation into Huang. The move came after reports alleged that he had been targeted by foreign intelligence operations.
Filed in the US District Court for the Northern District of California, the complaint accuses “Nvidia” and Huang of violating provisions of the Securities Exchange Act of 1934.
Shareholder Mark Kistenmacher filed the complaint, represented by “The Rosen Law Firm”. The proposed class includes investors who purchased or otherwise acquired “Nvidia” securities between Oct. 9, 2025, and Nov. 8, 2026.
The filing says statements by “Nvidia” that a review had found no evidence its chips were diverted elsewhere, and Huang’s description of the company’s dealings with Singapore-based “Megaspeed International” as “normal,” were materially misleading.
The plaintiff alleges that the statements did not disclose Huang’s alleged personal relationship with Alice Huang, a former “Megaspeed International” executive suspected of gathering intelligence on behalf of China. The complaint says the defendants withheld information about national security concerns that could threaten the company’s reputation and future business prospects.
It also alleges that the defendants’ statements and omissions artificially inflated “Nvidia’s” share price during the proposed class period. According to the court document, the shares fell 4.27% on Monday to close at $178.67 following the revelations. The plaintiff is seeking unspecified compensatory damages on behalf of affected investors.
Board says it has confidence in Huang
“Nvidia” said a committee of independent directors, supported by outside legal counsel, would oversee the investigation. The board said Huang supported the review and had committed to cooperating.
The company said the board currently had no reason to believe that US national security or “Nvidia’s” confidential information had been compromised, but that the inquiry would examine all available information.
Directors also expressed confidence in Huang and his leadership team, and pledged to provide further updates as appropriate.
“The New York Times” and “Financial Times” reported allegations that Alice Huang had worked for Chinese intelligence. The claims have drawn scrutiny to Huang’s personal relationship and its potential implications for the company.
China rejected the accusations on Monday. At a news briefing in Beijing, Foreign Ministry spokesperson Guo Jiakun described the allegations of Chinese espionage as baseless speculation.
The investigation has brought the leadership of a central player in the global artificial intelligence industry under scrutiny. “Nvidia’s” chips underpin much of the computing infrastructure used to develop and run AI models.
