Nvidia and its chief executive Jensen Huang have been sued by a shareholder who accuses them of misleading investors about Huang’s alleged relationship with a woman US officials suspect of working for Chinese intelligence.
The lawsuit
The proposed class action, Kistenmacher v. NVIDIA Corporation, No. 5:26-cv-13448, was filed on Monday in the US District Court for the Northern District of California, about five minutes after markets closed, Reuters reported. The plaintiff, Mark Kistenmacher, is represented by The Rosen Law Firm and seeks unspecified damages on behalf of investors who bought Nvidia securities between October 9, 2025, and November 8, 2026.
The complaint alleges Nvidia and Huang made materially false and misleading statements about Huang’s dealings with Megaspeed, a Singapore-based Nvidia customer, describing them as routine without disclosing his relationship with Alice Huang, a former Megaspeed executive the complaint calls a “suspected Chinese spy”. Alice Huang is not related to Jensen Huang.
The fall in the shares
Nvidia shares closed down 4.27% on Monday at $178.67, a fall of $7.97, wiping about $190 billion off the company’s market value in a single session, according to Reuters and Yahoo Finance. The stock had slid as much as 8% earlier in the session.
The suit was filed a day after Nvidia’s board opened an independent investigation on Sunday, November 8, into reports that Huang had been the target of a foreign intelligence effort. The board said it had no reason to believe national security or Nvidia secrets had been compromised, and expressed confidence in Huang.
Allegations, not findings
The allegations have not been tested in court, and no class has been certified. At least four law firms have announced investigations into whether Nvidia misled investors, according to Gizmodo. Alice Huang has not been charged, and US officials are reported to have concluded she was a Chinese intelligence asset who approached Huang to gather secrets about advanced AI chips and US administration policy.
Nvidia’s board has set no timeline for its review. The company reports third-quarter results on November 17.
Related reading: Nvidia Congress Summons Jensen Huang in Spy Claims Probe and Nvidia Shares Fall as Jensen Huang Probe Sparks Spy Claims
