Nvidia shareholders file class action after espionage scandal involving executive
In the United States, Nvidia shareholders have filed a class action lawsuit against the chipmaker and its CEO Jensen Huang. Investors accuse the company of concealing information about potential business and national security risks related to its executive's possible contacts with a person suspected of collaborating with Chinese intelligence.
This was reported by TechCrunch, citing the lawsuit. The filing was also confirmed by Rosen Law Firm, which represents the plaintiffs.
The lawsuit was registered on November 9 in the federal district court for the Northern District of California. It was initiated by shareholder Mark Kistenmacher, who demands compensation from Nvidia and Jensen Huang for alleged violations of U.S. securities laws.
The plaintiffs claim that Nvidia provided investors with incomplete or misleading information about the risks associated with its executive's activities and the relationship with Singapore-based company Megaspeed.
Specifically, the lawsuit mentions possible personal relations between Jensen Huang and former Megaspeed executive Alice Huang, whom U.S. intelligence agencies, according to media reports, suspect of collaborating with Chinese intelligence.
According to the plaintiffs, Nvidia did not properly disclose the circumstances of these contacts, even though they could create reputational risks and threaten the company's business interests.
The lawsuit also refers to previous public statements by Nvidia that the company had found no evidence of illegal diversion of its chips and that its cooperation with Megaspeed was of an ordinary commercial nature.
Investors believe these statements could have misled the market because they did not take into account potential risks arising from the company executive's contacts.
The class action covers investors who purchased Nvidia securities between October 9, 2025, and November 8, 2026. The plaintiffs seek damages, but no specific amount has been determined yet.
On Monday, November 9, Nvidia shares fell by 4.27%, closing at $178.67. The drop came amid reports of a possible intelligence operation targeting the company's CEO and the start of an internal investigation.
According to TechCrunch, on that trading day alone, Nvidia's market capitalization decreased by approximately $190 billion. However, the decline in the stock price itself does not prove the merits of the legal claims.
Rosen Law Firm announced that investors seeking to be appointed lead plaintiff in the case must apply to the court by January 8, 2027.
The lawsuit is currently in its early stages, and the court has not yet ruled on the merits of the allegations. The class action status also requires court approval.
Earlier, "Kurs Ukrainy" reported that Nvidia's board of directors had launched an independent investigation over suspicions of a possible Chinese intelligence operation against Jensen Huang.
In an official statement on November 8, the company emphasized that it currently has no reason to believe that Nvidia's confidential information or U.S. national security have been compromised.
The review is being conducted by a special committee of independent directors with the participation of outside legal counsel. Huang has agreed to cooperate with the investigation, and the board of directors reaffirmed its confidence in his leadership.
Source: TechCrunch, Rosen Law Firm, Nvidia
