Nvidia and its founder, Jensen Huang, were sued on Monday by shareholders who claimed the company hid details of the CEO’s alleged relationship with a businesswoman accused of being a Chinese spy.
Nvidia also announced an independent investigation into allegations involving its CEO and Alice Huang. The lawsuit, filed in a federal court in California’s San Jose, claims Nvidia and Huang misled investors by failing to disclose the alleged relationship and the national security concerns surrounding it. The issue could damage Nvidia’s reputation and affect its business prospects, the shareholders say, as per Reuters.
The company’s board of directors said on Sunday that an independent committee, assisted by external legal advisers, would oversee the inquiry.
Last month, US authorities concluded Alice Huang was an asset of Chinese intelligence, The New York Times reported. US intelligence agencies suspected Alice Huang of working for China’s ministry of state security, the country’s main intelligence agency. He did not provide information about the person involved. Jensen fully supports the review and has committed to cooperating with it. The Board has confidence in Jensen and his leadership team and will provide further updates as appropriate.”
The Nvidia chief had an extramarital affair with Alice Huang , a former executive at Singapore-based Megaspeed, according to the complaint. On Sunday, in a letter to staff, Jensen Huang told Nvidia employees that he had been “unfaithful” to his wife of 40 years. Separately, three Republican House committee chairs asked Huang to discuss his alleged links with Alice Huang in a closed-door meeting, according to Axios. In a statement, Nvidia said, “While the Board has no reason to believe that either national security or Nvidia secrets were compromised, the Board’s inquiry will examine all available information.
US President Donald Trump said on Monday the FBI was looking into the Nvidia CEO’s affair with Alice Huang.
