#Jensen Huang hit with shareholder class-action lawsuit
Nvidia has really taken a major tumble over the past couple of days. The story behind it is pretty sensational: Jensen Huang was reportedly having an affair with a woman named Alice Huang, and he has publicly acknowledged it. But the issue goes far beyond gossip. Foreign media reports say U.S. intelligence agencies have determined that the woman is a Chinese intelligence operative suspected of using her personal relationship to help smuggle Nvidia’s restricted GPU chips into China.
What actually landed Nvidia and Jensen Huang in court was the alleged “failure to disclose.” A retail investor who bought just over $20,000 worth of Nvidia stock this year filed a class-action lawsuit in a California federal court through the Rosen Law Firm, accusing Nvidia and Huang of failing to adequately disclose the relationship to investors, along with the national security and reputational risks it could pose, amounting to securities fraud. This is probably a pawn pushed forward by the Democrats—or perhaps an internal power struggle is beginning.
The market voted with its feet. Nvidia shares fell more than 9.5% over two trading sessions, wiping out about $420 billion in market value—nearly 2.85 trillion yuan. Several law firms have already launched investigations, and whether Huang’s position is secure has become Wall Street’s next big question.
$NVDAB
Nvidia has really taken a major tumble over the past couple of days. The story behind it is pretty sensational: Jensen Huang was reportedly having an affair with a woman named Alice Huang, and he has publicly acknowledged it. But the issue goes far beyond gossip. Foreign media reports say U.S. intelligence agencies have determined that the woman is a Chinese intelligence operative suspected of using her personal relationship to help smuggle Nvidia’s restricted GPU chips into China.
What actually landed Nvidia and Jensen Huang in court was the alleged “failure to disclose.” A retail investor who bought just over $20,000 worth of Nvidia stock this year filed a class-action lawsuit in a California federal court through the Rosen Law Firm, accusing Nvidia and Huang of failing to adequately disclose the relationship to investors, along with the national security and reputational risks it could pose, amounting to securities fraud. This is probably a pawn pushed forward by the Democrats—or perhaps an internal power struggle is beginning.
The market voted with its feet. Nvidia shares fell more than 9.5% over two trading sessions, wiping out about $420 billion in market value—nearly 2.85 trillion yuan. Several law firms have already launched investigations, and whether Huang’s position is secure has become Wall Street’s next big question.
$NVDAB