Investigation into Nvidia CEO Jensen Huang: Shares decline
Nvidia shares fell more than 4% after the company's board of directors launched an investigation into CEO Jensen Huang's relationship with Alice Huang, who is alleged to be spying for China. Several law firms have begun preparing lawsuits on the grounds that investors were misled.
The Nvidia board of directors has decided to investigate CEO Jensen Huang's relationship with Alice Huang, who is being monitored by U.S. intelligence on suspicion of spying for China. Following this development, the company's shares lost more than 4% of their value on the first trading day of the week.
The relationship, which Nvidia previously described as 'not unusual,' took on a new dimension after Jensen Huang admitted to the board that the relationship was intimate. Given that the company is based in Santa Clara, potential lawsuits are expected to be heard in the Northern District of California.
Law firms including Schall, Brown & Schwartz, as well as Rosen Law Firm, Levi & Korsinsky, Bronstein, Gewirtz & Grossman, and the Law Offices of Frank R. Cruz, have launched investigations into allegations that Nvidia misled investors or concealed critical information. Professor Robert Bartlett of Stanford Law School stated that lawsuits could be filed on the grounds of 'market fraud,' alleging that investors were priced based on incomplete or incorrect information.
Sources
- techcrunch.com · Link