India, Nov. 10 -- Nvidia and its founder, Jensen Huang, were sued on Monday by shareholders who claimed the company hid details of the CEO's alleged relationship with a businesswoman accused of being a Chinese spy.

The lawsuit, filed in a federal court in California's San Jose, claims Nvidia and Huang misled investors by failing to disclose the alleged relationship and the national security concerns surrounding it. The issue could damage Nvidia's reputation and affect its business prospects, the shareholders say, as per Reuters.

According to the complaint, the Nvidia chief had an extramarital affair with Alice Huang, a former executive at Singapore-based Megaspeed. Last month, US authorities concluded Alice Huang was an asset of Chinese...