NVIDIA CEO Jensen Huang and the company are accused of misleading shareholders.

The plaintiffs claim that management concealed information about Huang's alleged romantic relationship with Alice Huang, who is suspected of cooperating with Chinese intelligence.

NVIDIA's board of directors had previously launched an independent investigation into the circumstances of this story.

NVIDIA and its CEO Jensen Huang have been accused of misleading shareholders by concealing information about his alleged ties to a woman whom U.S. authorities suspect of cooperating with Chinese intelligence.

On Monday, a class-action lawsuit was filed against them in federal court in San Jose, California, Reuters reports.

According to the complaint, the defendants did not inform investors about Huang's alleged romantic relationship with Alice Huang — a former executive of the Singapore-based company Megaspeed International, who is not related to the NVIDIA CEO.

The plaintiffs also claim that the company concealed concerns from U.S. national security services and potential reputational and commercial risks associated with this story.

NVIDIA launched an independent investigation

Earlier, NVIDIA's board of directors initiated an independent review of reports about possible ties between Jensen Huang and Alice Huang. It is overseen by a committee of independent directors with the support of outside legal counsel.

The company stated that it currently has no grounds to believe that U.S. national security or NVIDIA's corporate secrets have been put at risk. At the same time, the board of directors plans to examine all available information.

Jensen Huang supported the investigation and promised to cooperate with the review. The board of directors also expressed confidence in the CEO and his management team.

According to media reports, U.S. authorities suspect Alice Huang of cooperating with Chinese intelligence. Jensen Huang has previously stated that he had an ordinary business relationship with her, as she worked for one of the company's clients from Singapore. He also denied any unlawful or improper actions.

More details about the incident — in the article:

Scandal at NVIDIA: board of directors investigates Jensen Huang's ties to alleged Chinese spy