San Jose, 10 November. Nvidia shareholders have filed a proposed class action in federal court in San Jose against the company and its chief executive Jensen Huang.
They allege that management misled investors by not disclosing Huang’s relationship with a woman whom, according to The New York Times, US authorities concluded was a Chinese intelligence asset, Reuters reported.
The suit was filed on Monday, 9 November, five minutes after the market closed, on behalf of those who bought Nvidia securities between 9 October 2025 and 8 November 2026; it is led by investor Mark Kistenmacher and represented by the law firm Rosen Law Firm. The plaintiffs seek unspecified damages. This is an allegation, not an established violation; as Reuters notes, shareholders often sue companies after an unexpected share price drop. The same day Nvidia shares closed 4.3% lower and the company’s market value shrank by about 190 billion dollars.
On 8 November Nvidia’s board announced an independent investigation: a committee of independent directors will establish whether the company’s head was the target of a foreign intelligence operation. Huang himself admitted in a letter to employees that he had been unfaithful to his wife but did not name the woman. US President Donald Trump said the FBI is looking into the circumstances but that he is confident Huang will be fine: according to him, Huang did not know she might be a spy. China rejected the allegations; Chinese Foreign Ministry spokesman Guo Jiakun called the spying reports unsubstantiated.
The story has a Kazakhstani side. In October Huang proposed making Kazakhstan a centre of physical artificial intelligence and received the Dostyk order.
What it means: The scandal around Nvidia’s head has moved into the legal arena: the suit for now only alleges concealment of information. The outcome will be decided by the board’s independent investigation and the court; whether anyone broke the law is not yet known.
Who benefits: The report names no beneficiary of the suit. The plaintiffs hope to recover losses from the share price fall; the law firm that filed it acts in the shareholders’ interest.
Background: A class action is a suit brought on behalf of a large group of people with the same claims. Under US law a proposed class action must still be certified as a class by the court.
We have also reported on Huang proposing that Kazakhstan become a hub of physical AI.
