Shareholder firms move to sue Nvidia over Huang statements
Original title: The race is on to sue Nvidia
Shares fell more than 4% Monday after the board opened an inquiry into Jensen Huang and Alice Huang.
Plaintiffs' firms including Schall, Brown & Schwartz announced investigations into whether Nvidia misled investors about CEO Jensen Huang's relationship with Alice Huang of Megaspeed. Huang later told the board the relationship was intimate. The New York Times reports U.S. intelligence monitored Alice Huang for more than a year. Stanford professor Robert Bartlett expects a fraud-on-the-market case, likely in the Northern District of California. The board said Sunday it has no reason to believe secrets were compromised.
Unconfirmed: Whether a complaint was already filed, and whether Huang knew of the intelligence connection, is unconfirmed.
- The first complaint starts a 60-day window to seek lead-plaintiff status.
- Rosen Law Firm said it is preparing a class action.
- Bartlett said an SEC bar is unlikely under Chairman Paul Atkins.
- Finding that Huang knew of the intelligence link would widen exposure.
- Settlements are usually paid by the company and its insurers.
- Vendors
- Nvidia
- Organizations
- SchallBrown & SchwartzRosen Law FirmMegaspeed
- Countries
- ChinaUnited States
From the original article
4 min read at techcrunch.com
Nvidia’s stock slid more than 4% after its board opened an investigation into Jensen Huang’s relationship with a suspected Chinese spy, and one securities law expert says the company’s earlier insistence that it was all “normal” could turn into a very expensive problem.
By Connie Loizos · techcrunch.com
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