New York: A Nvidia shareholder has sued the company and its CEO, Jensen Huang, accusing them of misleading investors through statements they made in response to media reports alleging that Huang had an affair with a woman suspected of spying for China, raising national security concerns.
The lawsuit follows President Donald Trump’s statement that the FBI is investigating the matter. Huang has acknowledged being unfaithful to his wife and apologised to his family and Nvidia. Trump said on Monday that Huang had told him he was unaware of the woman’s alleged links to espionage.
The alleged relationship, now under review by Nvidia’s board, has fuelled concerns that Beijing could be resorting to covert tactics to obtain the company’s advanced AI chips, which are subject to US export restrictions on sales to China.
The lawsuit, filed by retail investor Mark Kistenmacher, seeks unspecified damages and a trial by jury. He is also seeking class-action status for the case, which would allow him to represent other investors who purchased Nvidia shares between October 9 and November 8. The period begins on the day The New York Times first reported the alleged affair and ends when Nvidia announced that it was investigating reports that Huang had been the “target of a foreign intelligence effort”. Kistenmacher alleges that investors who bought shares during this period may have been misled by the company’s failure to disclose relevant information about the matter.
Nvidia’s stock plunged 4.3% on Monday, shedding $7.97 per share and erasing approximately $190 billion from the chipmaker’s market capitalisation. The shares continued to decline in pre-market trading on Tuesday.
News in Same Category
NSE IPO to open on September 17; price band set at ₹1,700–₹1,785
RBI Raises Repo Rate by 25 Basis Points to 5.50%
Gold climbs to ₹1.02 lakh per sovereign; silver also firms up
Motilal Oswal Wealth Management Makes it Easier to Invest in Bonds with New Platform
Credit Sector Grows as Repayment Discipline Improves: Experian Report
Tata Trusts to form Selection Committee for N Chandrasekaran’s successor
State Street completes ₹580-crore investment in Groww AMC
Indian mutual funds’ overseas investments rise 24% to $10.2 billion: RBI
NSE gets green light for IPO; 10 shareholders to sell 148.9 million shares
How Will the RBI Repo Rate Hike Affect Home Loans?
Calcutta High Court Suggests Renaming Siliguri Zoo Animals Amid Controversy Over ‘Sita’ and ‘Akbar’ Names
Trinamool Congress Announces Lok Sabha Poll Candidates: Yusuf Pathan and Mahua Moitra Among Nominees
Arvind Kejriwal Arrested by ED in Delhi Liquor Policy Case
Rajnath Singh Expresses Surprise at A K Antony’s Statement Advocating Anil Antony’s Defeat in Lok Sabha Polls
Modi: Rahul Gandhi Demonstrates ‘Baalak Buddhi’ Amidst Congress’s Third Consecutive Defeat
Air India Jet Veers Off Runway in Mumbai During Rain; All Passengers and Crew Safe
CPM Announces Candidates for Kerala Assembly Polls
India Slams Trump Post Calling Country “Hellhole”
Vijay Pays Tribute to Police Martyrs on Police Commemoration Day
Trump Admits Iran War Contributed to Republican Defeat in US Midterm Elections
