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Huang Renxun’s case caused Huida’s stock price to fall and Chinese shareholders suffered huge losses. Liu Longzhu has filed a class action lawsuit on behalf of investors, claiming the company hid risks and may seek a settlement of more than $1 billion.
Jen-Hsun Huang The case caused a sharp decline in the stock price of Nvidia (also known as Nvidia). On November 9, the market value dropped by $190 billion in a single day. Since then, the share price has remained under pressure and fell again on the 11th. By 3 p.m. Western time, each share fell to 159 yuan. manySugar Investors suffered huge losses by buying Huida shares. Southern California attorney Liu Longzhu has officially filed a class action lawsuit against Huida for concealing material information, making false statements, and misleading investors. They estimate that the probability of the case being settled is more than 90%, and the settlement amount may exceed 1 billion.
Liu Longzhu filed a class action lawsuit in the Federal District Court for the Northern District of California on the 10th, seeking compensation on behalf of investors who purchased Huida (codenamed NVDA) shares and suffered huge losses between October 9, 2025 and November 8, 2026. The lawsuit focuses on whether Huida fully disclosed the significant risks the company faces, including export controls, transshipment investigations and national security issues that may be involved in advanced artificial intelligence chips.
The lawsuit claims that Huida Co. and related officials have knowingly evaded chip transshipment investigations and national security risks since October 9, 2025, but have continued to downplay and deny related issues. The truth was not further revealed until November 8, when Huang Renxun publicly admitted his marital infidelity. The lawsuit believes that even if Huida Co. was aware of significant risks affecting its business and stock price, it failed to fully disclose it to investors, including hiding or misleading key information, allowing investors to make investment decisions with incomplete information, and ultimately suffering losses due to the relevant news being exposed and the stock prices declining.
Huang Renxun recently publicly admitted that he was unfaithful to his wife and that the man he had an affair with was suspected of being a Chinese spy. Huida’s board of directors later announced the launch of an independent investigation to investigate whether Huang Renxun was the target of foreign intelligence activities. Liu Longzhu believes that as the investigation and related evidence are gradually disclosed, if it can be further confirmed that Huida has problems with information disclosure, it will increase the legal pressure on the defendants, which will help promote the progress of this class action case and may increase the settlement amount.
In the past, Jen-Hsun Huang enjoyed a high reputation in the Chinese community. From starting a tech company to building Huida into a world leader in artificial intelligence chips, he has long been regarded as the “light of China.” His personal image and corporate achievements have also given many Chinese investors a high level of trust in Huida. Liu Longzhu said Huida is a popular technology stock that is widely held by the Chinese people and has a huge investor base.
According to Reuters, Huida shareholders, led by Mark Kistenmacher, recently requested compensation from Huida and are also seeking a class action lawsuit. Huida did not immediately respond. Liu Longzhu confirmed that so far, a total of two shareholder class action lawsuits, including Kistenmacher and himself, have been formally filed. Liu Longzhu believes that the legal team he represents is familiar with the cultural background and communication habits of Chinese investors, can directly provide services in Chinese and English, and has advantages in understanding investors’ needs and communication.
In addition, Liu Longzhu said that this class action adopts a risk agency model, and qualified investors do not need to pay attorney fees in advance. The specific fee will be managed as per the agreement between the two parties and the outcome of the case. Investors can save stock transaction records, purchase dates, prices, and loss information, and ask an attorney to evaluate whether they are eligible for compensation. They can contact Liu Longzhu Law Firm as soon as possible to join the class action. The law firm’s address is 111 Pacific, Suite 220, Irvine, CA 92618, phone 626-941-5174, WeChat lawyerlongliu9, email (email protected).
Summary FAQ
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The lawsuit accuses Huida of hiding material information, making false statements and misleading investors. In particular, it failed to fully disclose risks such as export controls, chip transshipment checks, and national security, resulting in losses for investors.
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He sought compensation on behalf of investors who bought NVDA stocks between October 9, 2025 and November 8, 2026 and suffered huge losses, emphasizing that Chinese investors had a high shareholding ratio and a wide scope for damages.
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Liu Longzhu believes that with the independent investigation and evidence disclosure, the legal pressure on Huida will increase, so the probability of settlement will exceed 90%; If the lawsuit proceeds smoothly, the settlement amount could exceed $1 billion.
