TuSimple Fires Its CEO Xiaodi Hou Amid Probe 9
TuSimple, a self-driving trucking company, said Monday it had fired its chief executive and co-founder, Xiaodi Hou. From a report: The San Diego-based company said in a news release and securities filing that its board of directors on Sunday had ousted Mr. Hou, who was also the board chairman and chief technology officer. Mr. Hou was fired in connection with a continuing investigation by members of the board, the release said. That review "led the board to conclude that a change of Chief Executive Officer was necessary," the company said in the release.
The securities filing said that the board's investigation found that TuSimple this year shared confidential information with Hydron, a trucking startup with operations mostly in China and funded by Chinese investors. The filing also said that TuSimple's decision to share the confidential information hadn't been disclosed to the board before TuSimple entered into a business deal with Hydron. TuSimple said it didn't know whether Hydron shared, or publicly disclosed, the confidential information, the securities filing said. WSJ, reporting on Sunday: TuSimple faces federal investigations into whether it improperly financed and transferred technology to a Chinese startup, according to people with knowledge of the matter.
The people said the concurrent probes by the Federal Bureau of Investigation, Securities and Exchange Commission and Committee on Foreign Investment in the U.S., known as Cfius, are examining TuSimple's relationship with Hydron, a startup that says it is developing autonomous hydrogen-powered trucks and is led by one of TuSimple's co-founders.
Investigators at the FBI and SEC are looking at whether TuSimple and its executives -- principally Chief Executive Xiaodi Hou -- breached fiduciary duties and securities laws by failing to properly disclose the relationship, the people familiar with the matter said. They are also probing whether TuSimple shared with Hydron intellectual property developed in the U.S. and whether that action defrauded TuSimple investors by sending valuable technology to an overseas adversary, the people said.
The securities filing said that the board's investigation found that TuSimple this year shared confidential information with Hydron, a trucking startup with operations mostly in China and funded by Chinese investors. The filing also said that TuSimple's decision to share the confidential information hadn't been disclosed to the board before TuSimple entered into a business deal with Hydron. TuSimple said it didn't know whether Hydron shared, or publicly disclosed, the confidential information, the securities filing said. WSJ, reporting on Sunday: TuSimple faces federal investigations into whether it improperly financed and transferred technology to a Chinese startup, according to people with knowledge of the matter.
The people said the concurrent probes by the Federal Bureau of Investigation, Securities and Exchange Commission and Committee on Foreign Investment in the U.S., known as Cfius, are examining TuSimple's relationship with Hydron, a startup that says it is developing autonomous hydrogen-powered trucks and is led by one of TuSimple's co-founders.
Investigators at the FBI and SEC are looking at whether TuSimple and its executives -- principally Chief Executive Xiaodi Hou -- breached fiduciary duties and securities laws by failing to properly disclose the relationship, the people familiar with the matter said. They are also probing whether TuSimple shared with Hydron intellectual property developed in the U.S. and whether that action defrauded TuSimple investors by sending valuable technology to an overseas adversary, the people said.
Re:Investors (Score:4, Informative)
Success (Score:2)
The company can run itself without a CEO.
Re: (Score:2)
maybe even better than a selfdriving car.
Too Simple (Score:3)
How do you transfer American-developed technology to China without looking like you're transferring American-developed technology to China?
It's Too Simple.
Two issues (Score:2)
There are two issues at play. One is the issue of national security. The other is securities fraud. TuSimple stock is traded on Nasdaq. From its IPO at around $40/share, the share price closed around $3.50 today. The CEO has fiduciary responsibilities, and violating those responsibilities flirts with jail time. Transferring technology to a competitor seems like a bad thing to do.
Translation (Score:2)