The scandal surrounding the personal life of NVIDIA's head continues to gain momentum. Jensen Huang admitted to an affair with a woman suspected of having ties to Chinese intelligence. Now, the consequences of this story could affect not only the company leader's reputation, but also his career.
A group of investors has filed a lawsuit, alleging that the concealment of the relationship by NVIDIA's executive negatively impacted the corporation's stock price. They believe commercial and technological secrets of the company could have been compromised. Shareholders claim that management misled them.
The lawsuit filed by Rosen Law Firm in California federal court states:
As a result of the wrongful acts and omissions, and the precipitous decline in the market value of the company's securities, plaintiff and other class members have suffered significant losses and damages.
Concurrently, NVIDIA is conducting its own internal investigation to determine how the scandal might have affected key corporate decisions. Earlier, the company's board of directors issued an official statement announcing the launch of an inquiry. Jensen Huang himself supported the investigation and pledged to cooperate fully with it.