SAN FRANCISCO, Nov. 21, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges TuSimple Holdings, Inc. TSP investors who suffered significant losses to submit your losses now. A new securities class action has been filed.
TuSimple Holdings Inc. TSP Securities Class Action:
The action challenges TuSimple's failure to disclose the Company and its most senior executives were improperly financing and transferring technology to a Chinese startup company.
Specifically, in connection with the TuSimple's April 2021 initial public offering and throughout the Class Period, Defendants misrepresented and concealed that: (1) TuSimple was engaged in undisclosed related party transactions with Hydron, a company founded by Mo Chen, TuSimple's co-founder, Executive Chairman of the Board, and former CEO; (2) TuSimple shared confidential information and/or proprietary technology with Hydron without Board approval or informing regulators or TuSimple's shareholders; (3) TuSimple failed to disclose the Board's internal investigation, which commenced in July 2022, into TuSimple's ties to Hydron; and (4) the aforementioned conduct enhanced the likelihood of regulatory scrutiny and investigatory action.
The truth began to emerge on Sunday, Oct. 30, 2022, when The Wall Street Journal published an article titled, "TuSimple Probed by FBI, SEC Over Its Ties to a Chinese Startup". According to WSJ, TuSimple was being investigated into whether it improperly financed and transferred technology to a Chinese startup.
Then, on Oct. 31, 2022, TuSimple announced that its Board of Directors had terminated Xiaodi Hou from his position as "the Chief Executive Officer, President and Chief Technology Officer of the Company and removed Hou from his position as Chairman of the Board," in each case, effective as of October 30, 2022.
On this news, TuSimple's share prices fell $2.88, or over 45%, in a single trading day. Significantly, as of the date of filing of the complaint, TuSimple shares traded as low as $2.61 per share, representing a decline of over 93% from TuSimple's $40 IPO offering price.
"We're focused on investors' losses and proving TuSimple improperly shared its intellectual property," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in TuSimple Holdings and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding TuSimple Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TSP@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
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