Nvidia’s stock slid more than 4% on Monday, the first trading day after its board said it would investigate CEO Jensen Huang over his relationship with Alice Huang, an executive U.S. intelligence believes was spying for China.
Securities lawyers were already moving. Schall, Brown & Schwartz, a Los Angeles shareholder-rights firm, was among the first to plant a flag, announcing Monday morning that it’s investigating whether Nvidia made false or misleading statements, or failed to disclose information pertinent to investors. Robert Bartlett, a Stanford Law professor and securities law expert, expects it to have plenty of company.
