TuSimple probed by FBI, SEC over ties to Chinese startup- WSJ (updated)

CreateAl Holdings

30/10/2022 20:59

(Adds details from WSJ report)
       Oct 30 (Reuters) - Self-driving truck startup TuSimple
Holdings Inc  TSP.O  is being investigated by the FBI, U.S.
Securities and Exchange Commission (SEC) and Committee on
Foreign Investment about its relationship with China-backed
Hydron Inc, the Wall Street Journal reported on Sunday.
    The officials are looking at whether TuSimple and its
executives, specially Chief Executive Xiaodi Hou, breached
fiduciary duties and securities laws by failing to properly
disclose the relationship with Hydron, the WSJ said, citing
people familiar with the matter.
    They are also trying to find out whether TuSimple shared
intellectual property developed in the United States with Hydron
and whether that action defrauded TuSimple investors by sending
valuable technology to an overseas adversary, the newspaper
said.
    Launched by TuSimple Co-Founder Mo Chen in June, Hydron is
committed to developing, manufacturing, and selling
hydrogen-powered trucks equipped with L4 autonomous driving
technology, according to its website.
    TuSimple's board opened its own investigation in July,
looking into whether the company incubated Hydron in China,
including by funding and transferring technology to the startup
without informing regulators, the TuSimple board or its
shareholders, WSJ said, citing other people familiar with the
matter.
    A TuSimple spokesman told WSJ that the company isn't aware
of any FBI or SEC investigations and that Hou has never been a
Hydron employee or received payment from Hydron. Hou also does
not have a financial interest in the company.
    TuSimple revealed in its IPO prospectus last year that its
backer Chinese social media firm Sina Corp's investments in
TuSimple had been put under review by the Committee on Foreign
Investment in the United States (CFIUS). 
    TuSimple and the SEC did not respond to a Reuters request
for comment on the report.
 (Reporting by Juby Babu in Bengaluru; Editing by Sandra Maler)
 ((Juby.Babu@thomsonreuters.com;))