Nvidia Crisis Stumps Corporate Governance Experts

Nvidia's stock fell nearly 9.5% over two days as CEO Jensen Huang faces scrutiny over an extramarital affair with Alice Huang, whom U.S. intelligence agencies believe was spying for China. The board hired law firm Wachtell, Lipton, Rosen & Katz to conduct an internal investigation. Corporate governance professors say there is no real precedent for a CEO caught in a suspected honeypot. Key questions include what information Alice Huang obtained, when Jensen Huang learned she was a suspected spy, and whether the board was misled. Shareholder lawsuits, including a proposed securities fraud class action, are already emerging.