r/investingchina
Updates for Getting Payment on the TuSimple $189 Million Settlement
TuSimple agrees to a $189M settlement over concealed ties with Hydron; eligible investors can file claims.
- Concealed material relationships and national security risks with Hydron, leading to CEO termination and massive stock drop.
- Agreed to a $189M settlement, confirming the severity of the investor fraud allegations.
This case is about whether TuSimple gave investors an accurate picture of its business relationships and the risks that came with them.
TuSimple presented itself as a leader in autonomous trucking. Investors later alleged that the company failed to disclose the extent of its relationship with Hydron, a China-based hydrogen truck startup, including transfers of technology and other resources.
April 2022: reports revealed previously undisclosed dealings between TuSimple and Hydron. Later that year, the company confirmed that it was facing a federal investigation into whether those activities violated national security protocols.
October 31, 2022: TuSimple announced the termination of its CEO. The stock fell more than 45% as investors reacted to the developments and the ongoing investigation.
Investors later sued, alleging that the company had concealed its relationship with Hydron and the risks associated with it.
TuSimple has now agreed to a $189 million settlement. Eligible if you purchased $TSP between April 15, 2021 and October 31, 2022. Claims are open - check if you’re eligible.