Nvidia, Jensen Huang sued after spy scandal erased $190 billion
What's new: The proposed shareholder class action followed a 4.3% stock drop and accuses the company of hiding national security risks.
Nvidia and CEO Jensen Huang were sued in federal court in San Jose, California, in a proposed class action accusing them of misleading shareholders about Huang’s ties to Alice Huang, a former Megaspeed International executive whom US authorities suspect was recruited by a Chinese spy agency. The filing came a day after Nvidia opened an independent board investigation and after Huang told employees he had been unfaithful to his wife. Nvidia shares fell 4.3% on Monday, wiping about $190 billion from the company’s market value. The company said independent directors and outside counsel will examine reports that Huang was targeted by a foreign intelligence effort.
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