Nvidia and Jensen Huang Face Shareholder Lawsuit Alleging Investors Were Misled About Spy Affair

Charlotte Web shares a report from the Associated Press: A shareholder has sued Nvidia and its CEO, Jensen Huang, accusing them of deceiving investors in their responses to media reports about Huang's affair with a purported Chinese spy that threatens national security. [...] The news reports said that the Commerce Department was investigating Alice Huang's company, Singapore-based Megaspeed, on suspicions that it was helping to sidestep U.S. export restrictions blocking Nvidia chips from being sold to China. But Nvidia said then that its compliance team checked and determined that Megaspeed wasn't doing anything illegal. But, according to the complaint, the statements were misleading because they were made when Jensen Huang was having an affair with Alice Huang, who is "suspected of seeking to help smuggle Nvidia products into China." It accuses Nvidia and Huang of failing to disclose the affair and issuing false statements about Nvidia's relationship with Megaspeed, which posed a "material risk" to Nvidia's reputation and business prospects. [...] "As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's securities,