Independent members of Nvidia’s board have retained former acting US Attorney Joon H. Kim and his law firm, Wachtell, Lipton, Rosen and Katz, to conduct a thorough, independent investigation into the Chinese spy scandal involving co-founder and CEO Jensen Huang.
Why Nvidia chose Joon H. Kim and his law firm
On Sunday, the Nvidia board formed an independent committee to investigate whether Huang’s extramarital affair had compromised corporate and/or national security. The committee found no data breach, and the board said it remained confident in his leadership of the company.
In its latest move, however, the committee hired top prosecutor Kim to lead an external investigation into the matter. Kim is a formidable American attorney; among his most prominent cases was the Governor Andrew Cuomo sexual harassment investigation of 2021. His current firm, Wachtell Limpton, is arguably Wall Street’s most prestigious and feared “crisis management” firm.
By commissioning an external probe, the Nvidia board is taking a detached and transparent approach rather than carrying out a corporate cover-up. This shields members from personal legal liability, as well as further shareholder lawsuits and Congressional demands.
A new statement from the independent members of the NVIDIA Board: https://t.co/uSFDhiohG8
— NVIDIA Newsroom (@nvidianewsroom) November 10, 2026
Investor lawsuits and Congressional scrutiny
On Monday, retail investor Mark Kistenmacher filed a class action lawsuit on behalf of all investors who bought NVDA shares between October 9, 2025 and November 8, 2026. The suit seeks unspecified compensatory damages from Nvidia, alleging that the company artificially inflated its share price by downplaying Jensen’s interactions with the former Megaspeed executive.
Trump has vouched for Jensen’s innocence, while three Republican House committee chairmen have summoned Huang to a closed-door Congressional briefing on the matter on November 18, a day after its Q3 earnings report. Although Jensen has pledged to cooperate fully with investigators, he has yet to confirm whether he will attend the briefing.
China and US protective measures
US lawmakers will likely propose legislation imposing tougher export rules, making it harder to sell chips to China. China, meanwhile, has called the spy allegations “unsubstantiated”, saying they are intended merely to tarnish its image.
NVDA stock reaction
After Sunday’s disclosure, Nvidia lost more than $200 million in market value, while rivals such as AMD rose more than 13%.
At the most recent market close, NVDA (Nasdaq) traded at $168.89, down a further 5.47% for the day.
Source: MarketWatch
Analysts expect a strong financial report on Tuesday, but developments in the ongoing controversy could have a major impact on future share prices, as Huang is the face of the company.
Source: coinpedia.org. Adapted by NBTC.
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