Submission + - Nvidia faces shareholder lawsuit alleging investors were misled on spy affair (apnews.com)
Charlotte Web writes: A complaint filed Monday in a California court says Nvidia misled investors about (alleged) Chinese spy Alice Huang and her company Megaspeed, reports the Associated Press.
Suspicions were raised that Megaspeed was helping sidestep America's export restrictions on Nvidia chips. But "Nvidia said then that its compliance team checked and determined that Megaspeed wasnâ(TM)t doing anything illegal."
From the Associated Press:
According to the complaint, the statements were misleading because they were made when Jensen Huang was having an affair with Alice Huang, who is âoesuspected of seeking to help smuggle Nvidia products into China.â It accuses Nvidia and Huang of failing to disclose the affair and issuing false statements about Nvidiaâ(TM)s relationship with Megaspeed, which posed a âoematerial riskâ to Nvidiaâ(TM)s reputation and business prospects.
âoeAs a result of Defendantsâ(TM) wrongful acts and omissions, and the precipitous decline in the market value of the Companyâ(TM)s securities, Plaintiff and other Class members have suffered significant losses and damages,â the complaint said. Had investors known the truth, they wouldnâ(TM)t have purchased Nvidiaâ(TM)s shares âoeat the artificially inflated prices that they did, or at all,â the complaint said.
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[Fun fact: Nvidia donated $25 million to Trumpâ(TM)s White House ballroom fund]
From the Associated Press:
According to the complaint, the statements were misleading because they were made when Jensen Huang was having an affair with Alice Huang, who is âoesuspected of seeking to help smuggle Nvidia products into China.â It accuses Nvidia and Huang of failing to disclose the affair and issuing false statements about Nvidiaâ(TM)s relationship with Megaspeed, which posed a âoematerial riskâ to Nvidiaâ(TM)s reputation and business prospects.
âoeAs a result of Defendantsâ(TM) wrongful acts and omissions, and the precipitous decline in the market value of the Companyâ(TM)s securities, Plaintiff and other Class members have suffered significant losses and damages,â the complaint said. Had investors known the truth, they wouldnâ(TM)t have purchased Nvidiaâ(TM)s shares âoeat the artificially inflated prices that they did, or at all,â the complaint said.
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[Fun fact: Nvidia donated $25 million to Trumpâ(TM)s White House ballroom fund]