The race is on to sue Nvidia

Nvidia shares fell more than 4% on Monday, losing $7.97 each, after the company's board said it would investigate CEO Jensen Huang over his relationship with Alice Huang. U.S. intelligence believes she was spying for China. TechCrunch reports that at least four securities firms, among them Schall, Brown & Schwartz and Levi & Korsinsky, announced probes that day into whether Nvidia misled investors. By that afternoon Rosen Law Firm had filed a proposed class action in the Northern District of California for retail investor Mark Kistenmacher, who bought about $20,500 of stock this year.

The suit names Nvidia and Huang and covers buyers between Oct. 9, 2025, and Nov. 8, 2026. It targets three public statements about Huang's ties to Megaspeed, the Singapore data center firm where Alice Huang was a senior executive. One was a spokesperson's claim that their interactions were "not unusual or unexpected." Huang has since told the board the relationship was intimate. Stanford Law professor Robert Bartlett said the CEO's knowledge is imputed to the company, and he expects a classic fraud-on-the-market claim. Filing first matters because it starts a 60-day window for investors to seek the lead plaintiff role.

Bartlett said such cases usually settle after long litigation, with the company and its insurers paying, which means shareholders ultimately bear the cost. He also flagged possible board oversight liability. He said things would change sharply if the investigation finds Huang knew of the intelligence link, though the board says it has no reason to believe secrets were compromised. Bartlett considers SEC action unlikely under Chairman Paul Atkins. TechCrunch cautions that early filings do not signal a strong case.