Nvidia faces shareholder lawsuit over CEO’s alleged relationship

Ankara (ANTARA) – US chipmaker Nvidia and its chief executive, Jensen Huang, are facing a class-action lawsuit from shareholders who allege they misled investors by failing to disclose Huang’s alleged relationship with a former Megaspeed executive.

The lawsuit follows Nvidia’s board announcement that it would launch an independent investigation into Huang, after reports emerged that he had been targeted in a foreign intelligence operation, Anadolu reported on Tuesday, citing court documents filed on Monday.

The suit, filed in the US District Court for the Northern District of California, accuses Nvidia and Huang of violating provisions of the US Securities Exchange Act of 1934.

According to the complaint, filed by shareholder Mark Kistenmacher through the law firm The Rosen Law Firm, the case represents investors who bought or acquired Nvidia securities between 9 October 2025 and 8 November 2026.

The filing says Nvidia’s statements that an internal review found no evidence of the company’s chips being diverted to other parties, and Huang’s description of the company’s business relationship with Singapore-based Megaspeed International as normal, materially misled investors.

The plaintiff alleges that those statements failed to disclose Huang’s alleged personal relationship with Alice Huang, a former Megaspeed executive suspected of gathering intelligence for China.

The lawsuit says Nvidia and Huang withheld information about national security issues that could threaten the company’s reputation and future business prospects.

The plaintiff also alleges that the defendants’ statements and omissions artificially inflated Nvidia’s share price during the period covered by the lawsuit.

Court documents show that Nvidia shares fell 4.27 per cent on Monday, closing at US$178.67, following the disclosure. The plaintiff is seeking an unspecified amount in compensatory damages on behalf of affected investors.