NVIDIA's CEO, Jensen Huang, is being investigated after reports surfaced about an alleged affair with Alice Huang, a former Megaspeed executive, who was described as a Chinese intelligence asset.
NVIDIA's independent directors hired Wachtell, Lipton, Rosen & Katz to assist with the review.
This comes at a tense time for U.S.-China tech relations and has sparked concerns about whether NVIDIA was upfront with investors.
Class action alleges NVIDIA misled investors
The news has led to a proposed class-action lawsuit accusing Huang and NVIDIA of misleading investors during the class period between October 9 and November 8, especially as its stock dropped 20% after espionage rumors tied to Megaspeed.
The Securities and Exchange Commission might also step in to review NVIDIA's disclosures.
While NVIDIA has said its board had "no reason to believe" US national security or company secrets had been compromised, NVIDIA's independent directors opened a review and hired Wachtell, Lipton, Rosen & Katz to assist, highlighting growing worries around tech security and foreign influence in artificial intelligence and chips.