Nvidia and CEO Jensen Huang face a shareholder lawsuit claiming investors were misled about his affair with a suspected spy

A shareholder has sued Nvidia (NVDA) and CEO Jensen Huang, claiming they misled investors about Huang's affair with a suspected Chinese spy.

Retail investor Mark Kistenmacher filed the proposed class action on Monday in federal court in San Jose, California. He asks for a jury trial and damages of an amount not yet set. The Rosen Law Firm represents him.

The suit says Nvidia and Huang hid his relationship with Alice Huang, a former executive of Megaspeed, a Singapore-based buyer of Nvidia chips. It argues the national security concerns this raised were a material risk to the company. The complaint says that had investors known the truth, they would not have bought the stock "at the artificially inflated prices that they did, or at all."

The complaint singles out four statements as misleading:

• Nvidia spokesperson John Rizzo told The New York Times in October 2025 that Nvidia's staff "found no evidence of diversion" of chips at Megaspeed.
• Rizzo said at the same time that Huang's visits to customer events were routine.
• Last month, Rizzo called Huang's interactions with Alice Huang "not unusual or unexpected."
• Huang himself told Bloomberg on October 30 that Nvidia's dealings with Megaspeed were "normal and not unusual."

The suit covers investors who bought Nvidia shares from October 9, 2025, when the first reports linking Huang to the woman appeared, through November 8. That was the day Nvidia's board opened its own investigation.

It cites the anti-fraud rules of the Securities Exchange Act and seeks to hold Huang liable as a person in control of the company. Nvidia did not immediately respond to requests for comment.

The complaint also argues that the board's probe raises the question of how closely Nvidia is "tracking where its A.I. chips end up."

That question reaches beyond the lawsuit. Two law enforcement officials told CBS News that the Justice Department's National Security Division is investigating Megaspeed over possible breaches of U.S. export limits on AI chips.

Nvidia shares closed 4.3% lower on Monday, a drop of about $190B in market value. They were down another 1.0% before the open on Tuesday, as of 7:46 a.m. ET.

Suits like this often follow a steep fall in a company's shares, and none of the claims have been tested in court.

The case adds to the pressure on Huang ahead of Nvidia's third-quarter results on November 17. President Donald Trump said on Monday that the FBI is looking into the affair, and three House committee chairs have asked Huang to a closed-door briefing on November 18.

Sources & Further Reading

1. "Nvidia and Jensen Huang face shareholder lawsuit alleging investors were misled about spy affair." Associated Press. November 10, 2026.
2. "Nvidia shareholder sues over CEO's undisclosed affair with purported spy." Courthouse News Service. November 9, 2026.
3. "Nvidia, Jensen Huang Sued by Shareholders Over Alleged Ties to Suspected Chinese Spy." Decrypt. November 10, 2026.
4. "Nvidia sued over Jensen Huang's alleged spy affair." Politico. November 9, 2026.
5. "Nvidia, CEO Jensen Huang face shareholder suit over his affair with alleged Chinese spy." CBS News. November 10, 2026.