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BackExtramarital affair exposes spy case, shareholders file class action lawsuit against Huida and Huang Renxun
Extramarital affair exposes spy case, shareholders file class action lawsuit against Huida and Huang Renxun
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自由时报18 minutes agoBusiness2 min readChinaView original

Extramarital affair exposes spy case, shareholders file class action lawsuit against Huida and Huang Renxun

HuidaJen-Hsun Huangclass action lawsuit

Quick Look

  • Huida shareholders filed a class-action lawsuit against the company and CEO Jensen Huang on Monday, alleging that it misled shareholders and raised national security concerns by concealing its relationship with Huang Le, a suspected Chinese intelligence operative.
  • Huida's stock price closed down 4.3% on Monday, with its market value evaporating by approximately US$190 billion.
  • The lawsuit was filed 5 minutes after the U.S. stock market closed, with shareholders seeking an unspecified amount of compensation.

AI-generated summary

Why It Matters

Huida shareholders filed a class-action lawsuit against the company and CEO Jen-Hsun Huang on Monday, alleging that Huang's relationship with Huang Le, a suspected Chinese intelligence operative, was concealed. Huida announced on Sunday that it would launch an investigation into the matter.

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Huida shareholders filed a class action lawsuit against Huida Company and its CEO Huang Renxun on Monday (9th). (AFP file photo)

[Financial Channel/Comprehensive Report] Huida shareholders filed a class action lawsuit against the company and its CEO Jen-Hsun Huang on Monday (9th), accusing them of deceiving shareholders by concealing Huang’s relationship with a suspected Chinese spy.

"Reuters" reported that according to the complaint filed in the federal court in San Jose, California, the defendants misled shareholders about Huang's extramarital affair with Huang Le (also known as Alice Huang), a former senior executive of Singapore data center company Megaspeed, and failed to disclose that the matter raised national security concerns and threatened Huida's goodwill and business prospects.

The New York Times first reported on the relationship between the two in October, saying that the US authorities had identified Huang Le as a Chinese intelligence agent. Jen-Hsun Huang confirmed on Sunday (8th) that he had been unfaithful to his wife, but did not disclose the details of the extramarital affair.

Huang Renxun is the co-founder of Huida, and successfully led the company to become the world's most valuable chip manufacturer, which also made him one of the world's most outstanding representatives in the AI ​​boom.

Huida announced on Sunday that it would launch an investigation into the matter. On Monday, Huida's share price closed down 4.3%, and its market value evaporated by approximately US$190 billion (approximately NT$6.26 trillion). The lawsuit was filed five minutes after the U.S. stock market closed. It is common practice for shareholders to sue a company after an unexpected share price drop. Currently, Huida shareholders are seeking an unspecified amount of compensation from the defendants.

What to Watch

AI outlook — possibilities, not facts

  • Huida will announce the results of internal investigation

    Very likely · Within weeks

  • The class action lawsuit will enter the court process

    Very likely · Within months

Open Questions

  • What is the specific amount of compensation?
  • When will the results of the investigation be announced?
  • Final identification of whether Huang Le is indeed a Chinese intelligence agent
  • Follow-up progress of litigation

Related Topics

Huida
PeopleJen-Hsun HuangHuang Le
OrganizationsMegaspeedFederal Court in San Jose, California
PlacesSan Jose, California
TopicsJen-Hsun Huangclass action lawsuitHuang Lenational securitystock price fallsFederal Court in San Jose, California
This article was originally published by 自由时报.

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