Shareholders of Nvidia have initiated a class-action lawsuit against the company and its CEO, Jensen Huang, claiming deceit for hiding Huang’s connections to a person believed to be a Chinese spy, as reported by Reuters, referencing the legal filing.
The legal action was submitted in a federal court located in San Jose, California. The plaintiffs allege that the defendants deceived shareholders about Huang’s connection with Alice Huang, an executive at the Singapore firm Megaspeed. U.S. intelligence agencies suspect that she was enlisted by China’s Ministry of State Security.
The plaintiffs allege that Nvidia and Jensen Huang did not reveal that this circumstance endangered U.S. national security, thus putting the chipmaker’s reputation and business opportunities at risk. They are pursuing compensation, although the exact figure is not mentioned in the document.
Nvidia stock dropped 4.3% to $178.67 by the end of trading on November 9. The firm’s market value declined by roughly $190 billion, as reported by Reuters. At the same time, the S&P 500 index increased by 2.3% to 7,549.94 points: its highest growth since April, according to Bloomberg.
Nvidia represents 6.7% of the S&P 500 index; this kind of performance divergence is very uncommon, having last happened in May 2009, according to the agency.
source: reuters.com
