A shareholder has filed a proposed class action against Nvidia and its CEO, Jensen Huang, accusing them of concealing Huang's alleged affair with a suspected Chinese spy and misleading investors about national security risks that could threaten the chipmaker's business and reputation.
The proposed class action, filed November 9, 2026, in federal court in San Jose, California, alleges that Nvidia made misleading statements about its dealings with Singapore-based Megaspeed International, whose former executive, Alice Huang, also known as Huang Le, was reportedly identified by U.S. intelligence officials as a Chinese intelligence asset.
The lawsuit came as Nvidia shares fell 4.3%, wiping approximately $190 billion from the company's market value following disclosures about the relationship and a newly announced board investigation. Shareholder Mark Kistenmacher claims investors suffered financial losses because Nvidia concealed information that could affect its business prospects.
Megaspeed, which reportedly purchased more than $4.8 billion in Nvidia chips over two years, has faced scrutiny over suspicions that it helped Chinese companies circumvent U.S. export restrictions on advanced artificial intelligence technology. Federal officials have investigated whether the company's overseas data centers were used to provide Chinese customers access to restricted Nvidia processors.
Nvidia previously defended its relationship with Megaspeed. In October 2025, company spokesman John Rizzo said a compliance review found no evidence that chips were being diverted to China. He also characterized Huang's interactions with Alice Huang as routine business meetings. In October 2026, Rizzo again described their interactions as ordinary, while Jensen Huang told Bloomberg on October 30 that Nvidia's dealings with Megaspeed were normal.
Kistenmacher alleges those assurances were misleading because Huang was involved in an intimate relationship with Alice Huang, who was suspected of helping China obtain restricted technology. The shareholder argues that the relationship exposed Nvidia to national security concerns and potential damage to its reputation that investors should have known about.
On November 8, Nvidia's board announced an independent investigation following reports that Huang had been targeted by a foreign intelligence operation. The directors said they had no reason to believe national security or company secrets had been compromised and expressed confidence in Huang's leadership.
Huang acknowledged being unfaithful to his wife in a message to employees that day, apologized to his family and said he would cooperate with the investigation. His statement also pledged to protect Nvidia and support U.S. national security.
Two days later, Nvidia's independent directors appointed former acting U.S. Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to conduct the inquiry. The investigation will examine the allegations involving Huang and the suspected intelligence operation.
Nvidia shares closed at $178.67 on November 9, down $7.97 from the previous trading session. The shareholder lawsuit was filed shortly after the market closed, attributing investor losses to the disclosures that preceded the decline.
Kistenmacher seeks to represent investors who purchased Nvidia securities between October 9, 2025, and November 8, 2026. The complaint alleges violations of federal securities laws prohibiting materially misleading statements to shareholders and seeks to hold Huang personally responsible for the company's alleged misconduct.
The shareholder argues that investors purchased Nvidia securities at artificially inflated prices because they were unaware of the relationship and its potential consequences. The claims require proof that Nvidia or Huang knowingly or recklessly misled investors and that the alleged misconduct caused financial losses.
The proposed class action seeks unspecified damages, legal costs, and a jury trial. A federal judge will determine whether the lawsuit can proceed on behalf of the proposed investor class as Nvidia's independent investigation continues.
