Nvidia Corp. (NASDAQ:NVDA) and CEO Jensen Huang were sued Monday by a shareholder over what the lawsuit calls false statements, after Huang admitted to a relationship with an alleged Chinese spy, and the stock fell more than 4% in regular trading.
Complaint Targets Statements on Megaspeed
Plaintiff Mark Kistenmacher filed the proposed class action in the U.S. District Court for the Northern District of California on behalf of investors who bought Nvidia securities between Oct. 9, 2025, and Nov. 8, 2026.
The complaint cites remarks about Megaspeed, a Singapore data center company.
Nvidia spokesman John Rizzo told The New York Times that Huang’s interactions with Megaspeed executive Alice Huang were “not unusual or unexpected,” and Huang told Bloomberg that dealings with the firm were “normal and not unusual.”
The lawsuit claims the statements were “materially false and misleading” because “Jensen Huang had an affair with Alice Huang, a Megaspeed executive and suspected Chinese spy.”
Nvidia did not immediately respond to Benzinga’s request for comment.
NVDA Share Price ‘Inflated’
The suit also alleges that Nvidia’s share price was “artificially inflated” during the period and that investors lost money when the news came out.
The complaint accuses Nvidia and Huang of violating federal securities law with misleading statements and says Huang is also liable as the person who controlled what the company said.
Trump Backs Huang as Board Opens Probe
President Donald Trump said Monday that he spoke to Huang and was told that the Nvidia CEO had no idea Alice Huang was a spy.
“I really believe him,” he told reporters at the White House, adding that the Federal Bureau of Investigation is looking into the matter
Huang admitted the romantic relationship in a message to employees, and Nvidia’s board announced an independent investigation Sunday.
The New York Times reported last month that U.S. officials had concluded Alice Huang was a Chinese intelligence asset, and that Trump was briefed on the findings roughly a year ago and chose not to act on them.
Price Action: Nvidia’s shares fell 4.27% on Monday to close at $178.67 and were up 0.87% at $180.22 in extended trading.
Benzinga Edge rankings indicate Nvidia’s stock has a Momentum score in the 24th percentile and a Growth score in the 98th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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