TSP.US

id: 131

TuSimple (TSP) $189M Investor Settlement

Eligible claimants can submit their claims for compensation.

S.D. California

Court

3:22-cv-01300

Case number

04/15/2021

Class period Start

12/20/2022

Class period End

01/31/2025

Claim deadline

TuSimple (TSP) has agreed to settle $189M with investors to resolve claims that it overstated safety and rushed testing, increasing accident risk.

Outline:

In October 2022, WSJ reported TuSimple was under FBI, SEC, and CFIUS probes for issues with Chinese startup Hydron. Things escalated with potential espionage charges, CEO Hou’s resignation, and a whistleblower’s video exposing safety problems from a truck crash. Following this news, $TSP significantly fell, and TuSimple faced a lawsuit from investors.

Timeline:
On August 1, 2022: WSJ published a report on TuSimple titled "Self-Driving Truck Accident Draws Attention to Safety at TuSimple.”
Following this news, $TSP fell by 9% on the same day.
On October 30, 2022: WSJ reported that TuSimple is under FBI, SEC, and CFIUS investigations.
After that, $TSP fell by over 45%.
On February 10, 2023: $TSP stockholder filed a claim against TuSimple based on all these undisclosed issues.
Background:

In May 2020, NASDAQ tightened IPO rules to limit Chinese companies, citing concerns over transparency and ties to Chinese officials.
Meanwhile, CFIUS investigated TuSimple’s links to Sun Dream and Sina Corporation, which has ties to the Chinese Communist Party.

Then, on April 6, 2022, a TuSimple autonomous truck crashed into a divider in Tucson, nearly hitting another vehicle. Despite CEO Hou's claims of no tech issues, a whistleblower’s video revealed the crash and showed it was due to system flaws, not human error.

After that, the Wall Street Journal’s article also highlighted serious safety concerns with TuSimple’s self-driving trucks, revealing the April crash and criticizing the company’s rushed and unsafe testing on public roads.

On this news, $TSP fell by 9.7% on August 1, 2022.

Moreover, on October 30, 2022, the Wall Street Journal reported that TuSimple was under FBI, SEC, and CFIUS investigation for potentially mishandling tech and finances with the Chinese startup Hydron. The next day, TuSimple admitted to sharing confidential information with Hydron and fired CEO Hou, citing improper disclosures.

As a result of all these revelations, $TSP stock dropped by over 98% from its IPO price.

What Can Investors Expect Now?

TuSimple recently decided to resolve the suit and settle $189M with investors to end claims related to overstating safety and rushing testing.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Negligence,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.62

Filing date

08/31/2022

Plaintiffs

Austin Dicker

Attorneys

Kahn Swick & Foti, LLC (San Francisco, CA), Robbins Geller Rudman & Dowd LLP (San Diego, CA)

Defendants

Cheng Lu, Patrick Dillon, Xiaodi Hou, Mo Chen, James Mullen

Judge

Hon. Roger T. Benitez

Administrator

Verita Global

Settlement agreement date

2024-08-22

Court hearing date

12/02/2024

Exclusion deadline

11/12/2024

Objection deadline

11/12/2024

Hearing deadline

12/02/2024

Attorney fee

$47,550,000

Class wide damages

$1,108,978,000

Trades matching type

FIFO

+$189,000,000

Cash Settlement Amount

Frequently Asked Questions

Who is eligible for this settlement?

Do I have to sell securities to be eligible?

How long does the payout process take?

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