Nvidia faces its first investor lawsuit as its stock falls after the Jensen Huang spy scandal

Nvidia's stock fell more than 4% on Monday, the first trading day after its board said it would investigate CEO Jensen Huang's relationship with Alice Huang. She is a Megaspeed executive whom US intelligence believes was spying for China. The two are not related. At least four law firms, including Schall, Brown & Schwartz and Levi & Korsinsky, announced investigations into whether Nvidia misled investors. That afternoon, Rosen Law Firm filed a complaint in the Northern District of California on behalf of a retail investor who had bought about $20,500 of Nvidia stock this year. TechCrunch reports that the short seller Culper Research called the two executives' relationship "uncomfortably close" in a May 13 report. Citing Wired, TechCrunch also reports that Huang hired Heller Inc., a crisis communications firm known for handling sex scandals, at least a year before he admitted the affair. Huang has withdrawn from Wednesday's ElevenLabs Summit in New York and from other events, including the Anthropic CEO Forum. At a White House briefing, President Trump was vague about when he learned of the affair. Nvidia says it has no reason to believe national security or company secrets were compromised. Huang's influence over US chip export policy has made the case a policy question as well as a corporate one.