Nvidia shares fall 4.27% as a shareholder sues over CEO disclosures

The lawsuit. Rosen Law Firm filed the case on behalf of Mark Kistenmacher. In a Business Wire notice (opens in a new tab), the firm said the proposed class covers purchasers of Nvidia securities between Oct. 9, 2025, and Nov. 8, 2026. Courthouse News and TechCrunch, both describing the complaint, say it accuses Nvidia and Huang of making false or misleading statements, or failing to disclose material facts, about Huang's relationship with Alice Huang, a former executive at Singapore-based Megaspeed, and about Nvidia's dealings with that company. The notice says the complaint also alleges that the matter raised national-security concerns that, if revealed, presented a material risk to Nvidia's reputation and business prospects. Plaintiffs are seeking unspecified damages. Rosen Law Firm's notice states that no class has been certified. These are allegations in a newly filed civil complaint. They have not been proven in court.

Reuters said Nvidia did not immediately respond to a request for comment on the lawsuit. Courthouse News reported the same after regular business hours.

The reporting behind the drop. The stock move came after Sunday's board statement, which we covered in our Nov. 8 story. Nvidia's board said it was opening an independent investigation "in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort." The board said it "has no reason to believe that either national security or NVIDIA secrets were compromised," but that its inquiry "will examine all available information." Huang has said he will cooperate.

CNBC and other outlets, citing reports in The New York Times, have said U.S. intelligence officials believe Alice Huang — who is not related to Jensen Huang — was passing information to Beijing. MODEL has not independently verified those intelligence claims, and we are not stating them as fact.

China's response. China has denied the espionage claims. Reuters reported that Foreign Ministry spokesperson Guo Jiakun, asked on Monday about the Nvidia probe, said the "so-called Chinese spy narrative" is unsubstantiated. CNBC also reported that China has dismissed the claims.

What Trump said. President Donald Trump told reporters on Monday that he spoke with Huang, according to CNBC and the Associated Press. CNBC quotes Trump as saying Huang told him, "I had no idea that she was a spy," and that Trump added, "I really believe him." Trump also said the FBI is "looking into it in terms of something else" and that he thinks Huang "will be in good shape." AP reported the same remarks. The FBI's own account of any inquiry was not independently confirmed here.

What we left out. Some write-ups rounded Monday's decline to 5% or put the market-value loss at $192 billion; we used Yahoo Finance's close of $178.67, down $7.97 or 4.27%, and Reuters' figure of about $190 billion. We also left out unverified claims from book excerpts that Huang told his team not to plan for a Taiwan blockade. We are not treating the intelligence allegations, or the lawsuit's claims, as proven.

Disclosure: News report, not a MODEL test. Not investment advice. Not sponsored. No affiliate links.

MODEL Editors