TuSimple Holdings Inc. TSP Securities Class Action:

The lawsuit challenges TuSimple’s failure to disclose the company and its top executives improperly funded and transferred technology to a Chinese start-up.

Specifically, in connection with TuSimple’s IPO in April 2021 and throughout the Class Period, Defendants misrepresented and withheld the following: (1) TuSimple was involved in undisclosed related party transactions with Hydron, a company owned by Mo Chen, the Co-Founder of TuSimple, Executive Chairman of the Board and former CEO; (2) TuSimple has shared confidential information and/or proprietary technology with Hydron without the approval of the Board of Directors or without notifying the regulators or TuSimple shareholders; (3) TuSimple has failed to disclose the board’s internal investigation into TuSimple’s affiliations with Hydron, which began in July 2022; and (4) the foregoing conduct increased the likelihood of regulatory scrutiny and investigation.

The truth began to emerge on Sunday October 30, 2022 when The Wall Street Journal published an article titled “TuSimple investigated by the FBI, SEC over its ties to a Chinese startup.” Corresponding WSJTuSimple was investigated for improperly funding and transferring technology to a Chinese startup.

Then, on October 31, 2022, TuSimple announced that its board of directors had fired Xiaodi Hou from his position as “the company’s chief executive officer, president and chief technology officer” and removed Hou from his position as chairman of the board. ” in each case with effect from October 30, 2022.

On the back of this news, TuSimple’s stock prices fell $2.88, or over 45%, in a single trading day. Significantly, TuSimple shares were trading as low as $2.61 at the time the complaint was filed…