A Nvidia shareholder sued the company and CEO Jensen Huang in federal court in San Jose on Monday, Nov. 9, accusing them of making false or misleading statements after reports of Huang's relationship with a woman suspected of spying for China.
The shareholder, Mark Kistenmacher, seeks to represent investors who bought Nvidia stock between Oct. 9 and Nov. 8 in a securities class action, Courthouse News Service reported. The complaint accuses Nvidia and Huang of violating the Securities Exchange Act and Rule 10b-5. It points to Nvidia's earlier statements about Megaspeed International, a Singapore company that had been looking to buy about $2 billion of Nvidia technology, and to Huang's comments that dealings with Megaspeed were "normal and not unusual."
Nvidia's board has opened an independent investigation. The company has said Huang will remain CEO while the inquiry continues, NBC Bay Area reported. Nvidia shares fell more than 4% on Monday. The lawsuit's allegations have not been proven in court. Related: Nvidia’s board probe.