Reuters reported,Huida with the ceoJen-Hsun Huang Shareholders sued the company on the 9th, accusing it of misleading investors by concealing the relationship between Huang Renxun and Huang Le, a suspected Chinese spy. Shareholders are seeking unspecified damages in a class action lawsuit. Huida’s stock price closed down 4.3% on the day, and its market value dropped by nearly US$190 billion.
According to the complaint filed in federal court in San Jose, California, shareholders alleged that Huida and Huang failed to truthfully disclose Huang’s alleged extramarital affair with Alice Huang, a former director of Singapore data center company MegaSpeed, and failed to disclose the national security concerns raised by the matter, which threatened Huida’s reputation and business prospects.
The New York Times reported in late October that Shuanghuang was suspected of having an extramarital affair, and said that US authorities had identified Huang Le as a Chinese intelligence agent. Jen-Hsun Huang admitted in a letter to employees on the 8th that he was unfaithful to his wife, but did not disclose the details of the relationship. Huida announced an investigation on the same day.
The lawsuit was filed five minutes after the US stock market closed on the 9th. Huida shareholders headed by Mark Kistenmacher sought compensation from the defendant. Huida did not immediately respond.
It is quite common for shareholders to file lawsuits after a company’s stock price drops unexpectedly.
Jen-Hsun Huang is the co-founder of Huida, who led the Santa Clara, California-based company to become the world’s most valuable chip maker. He has also become one of the most representative figures in the global artificial intelligence craze.
