Nvidia board’s idolatry of Jensen Huang could open the door to shareholder lawsuits in Delaware Chancery Court
There is no doubt that Nvidia founder and CEO Jensen Huang is a visionary genius, whose vision as the ‘ Godfather of AI’ has improved billions of lives around the world and contributed greatly to American prosperity and innovation.
Key points
- In 2019, Delaware’s Supreme Court revived a suit against the directors of Blue Bell Creameries, an ice cream maker whose board had no system for overseeing food safety before a deadly listeria outbreak.
- Under this doctrine, and derivative variants of it, several boards have run into trouble in Delaware Chancery Court for similar sins of omission when it comes to oversight.
- In 2021, the Court of Chancery let claims proceed against Boeing’s directors, who had no board committee responsible for airplane safety before the 737 MAX crashes.
Kevin Cramer of the Senate Banking Committee and others, and demands that he answer to Congress, there were some blatant red flags in Huang’s recent leadership that were apparently missed by the Nvidia board.
Additional details
- Jensen described the Megaspeed dealings as normal, and apparently the Nvidia board was content to leave it at that.
- Did the board ever discuss Megaspeed at all, or Jensen Huang’s relationship with Alice Huang?
- The answers are in the board meeting minutes, and alarmingly for Nvidia’s board, shareholders can now get those minutes with nearly complete transparency.
- Even after Delaware narrowed those inspection rights last year, board minutes and board materials remain within reach for plaintiffs litigation.
- Ten days later, Jensen admitted he had been unfaithful to his wife, in a message that referred to the national security concerns in the press – a troubling sequence of events after all the repeated denials.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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