Nvidia board hires counsel amid Huang affair and spy questions
Original title: Nvidia’s crisis has corporate governance experts reaching for the popcorn
Shares fell about 9.5% in two days; a proposed class action says Megaspeed dealings were misdescribed.
Nvidia stock fell 5.47% on Tuesday after a 4% drop on Monday, with little fresh company news. CEO Jensen Huang has admitted an affair with Alice Huang, a former executive at customer Megaspeed whom U.S. intelligence agencies believe spied for China. The board hired Wachtell, Lipton, Rosen & Katz and said it has no reason to believe national security or Nvidia secrets were compromised. Governance scholars expect securities suits and say what Huang knew, and when, is still unclear.
Unconfirmed: U.S. agencies believe Alice Huang spied for China, but whether secrets were taken or when Jensen Huang knew is unconfirmed.
- Wired reported Huang hired a sex-scandal PR firm a full year ago.
- Professors say no precedent mixes an affair with suspected national-security compromise.
- A Delaware mismanagement claim is harder to bring than securities fraud.
- Huang’s children work at Nvidia, and no succession plan is apparent.
- Vendors
- Nvidia
- Organizations
- MegaspeedWachtellLiptonRosen & Katz
- Countries
- ChinaUnited States
From the original article
5 min read at techcrunch.com
The governance experts we talked to say nobody has seen anything like what's unfolding right now.
By Connie Loizos · techcrunch.com
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