Nvidia and its chief executive, Jensen Huang, are facing a shareholder class-action lawsuit. The lawsuit alleges they concealed Huang's relationship with a suspected Chinese spy, following a reported $190bn (£145bn) drop in the chipmaker's market value on Monday.
Filed in a federal court in San Jose, California, the proposed lawsuit accuses Nvidia and its founder of misleading investors. It claims they failed to disclose potential national security risks linked to Huang’s relationship with former executive Alice Huang, who US intelligence officials reportedly identified as a Chinese intelligence asset. China has rejected these espionage allegations.
Shareholder Mark Kistenmacher, represented by the Rosen Law Firm, brought the complaint. It alleges Nvidia violated US securities laws by withholding information that could harm its reputation and business prospects. The lawsuit covers investors who bought Nvidia shares between 9 October 2025 and 8 November 2026 and seeks unspecified damages.
Nvidia's shares closed 4.3 per cent lower at $178.67 on Monday, after an earlier nine per cent plunge. The company's board has launched an independent investigation into whether its boss was targeted by a foreign intelligence operation. Nvidia stated it "had no reason to believe" confidential information or national security had been compromised, and the board reiterated its confidence in Huang. US President Donald Trump confirmed on Monday that the FBI is investigating the scandal.