SAN FRANCISCO, Nov. 02, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges TuSimple Holdings, Inc. (NASDAQ: TSP) investors who suffered significant losses to submit your losses now.
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TuSimple Holdings Inc. (NASDAQ: TSP) Investigation:
The investigation focuses on TuSimple’s repeated assurances that executive officers, directors, holders of more than 5% of the company’s voting securities, will not be permitted to engage in related party transactions with TuSimple without the prior consent of its audit committee.
TuSimple’s assurances came into serious question on Oct. 30, 2022, when The Wall Street Journal reported that the FBI and SEC are investigating whether the company and its CEO (Xiaodi Hou) violated the securities laws by failing to disclose the company’s relationship with Hydron Inc., a PRC-based startup that says it is developing autonomous hydrogen-powered trucks. The WSJ went on to report that the FBI and SEC are probing whether TuSimple improperly financed and transferred technology developed in the U.S. to Hydron “and whether that action defrauded TuSimple investors by sending valuable technology to an overseas adversary[.]”
Then, on Oct.31, 2022, TuSimple announced: (1) it fired Hou and removed him from his position as Chairman of the Board in connection with an internal investigation; (2) its co-founder and former Chairman and Executive Chairman (Mo Chen), who holds a greater-than-10% interest in TuSimple, is a founder, director, and CEO of Hydron; (3) Chen engaged in a secret related party transaction between TuSimple and Hydron without first obtaining the consent of TuSimple’s audit committee; and, (4) during 2022 the company likely shared confidential information with Hydron and its partners before entering into non-disclosure and cooperation agreements.
These events sent the price of TuSimple shares crashing 45% lower on Oct. 31, 2022, wiping out over $500 million of shareholder value.
“We’re focused on investors’ losses and the extent to which TuSimple improperly shared its intellectual property,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in TuSimple Holdings and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding TuSimple Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TSP@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
