TuSimple (TSP) $189M Investor Settlement
TuSimple (TSP) has agreed to settle $189M with investors to resolve claims that it overstated safety and rushed testing, increasing accident risk.
In October 2022, WSJ reported TuSimple was under FBI, SEC, and CFIUS probes for issues with Chinese startup Hydron. Things escalated with potential espionage charges, CEO Hou’s resignation, and a whistleblower’s video exposing safety problems from a truck crash. Following this news, $TSP significantly fell, and TuSimple faced a lawsuit from investors.
On August 1, 2022: WSJ published a report on TuSimple titled "Self-Driving Truck Accident Draws Attention to Safety at TuSimple.”
Following this news, $TSP fell by 9% on the same day.
On October 30, 2022: WSJ reported that TuSimple is under FBI, SEC, and CFIUS investigations.
After that, $TSP fell by over 45%.
On February 10, 2023: $TSP stockholder filed a claim against TuSimple based on all these undisclosed issues.
In May 2020, NASDAQ tightened IPO rules to limit Chinese companies, citing concerns over transparency and ties to Chinese officials.
Meanwhile, CFIUS investigated TuSimple’s links to Sun Dream and Sina Corporation, which has ties to the Chinese Communist Party.
Then, on April 6, 2022, a TuSimple autonomous truck crashed into a divider in Tucson, nearly hitting another vehicle. Despite CEO Hou's claims of no tech issues, a whistleblower’s video revealed the crash and showed it was due to system flaws, not human error.
After that, the Wall Street Journal’s article also highlighted serious safety concerns with TuSimple’s self-driving trucks, revealing the April crash and criticizing the company’s rushed and unsafe testing on public roads.
On this news, $TSP fell by 9.7% on August 1, 2022.
Moreover, on October 30, 2022, the Wall Street Journal reported that TuSimple was under FBI, SEC, and CFIUS investigation for potentially mishandling tech and finances with the Chinese startup Hydron. The next day, TuSimple admitted to sharing confidential information with Hydron and fired CEO Hou, citing improper disclosures.
As a result of all these revelations, $TSP stock dropped by over 98% from its IPO price.
What Can Investors Expect Now?
TuSimple recently decided to resolve the suit and settle $189M with investors to end claims related to overstating safety and rushing testing.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired TuSimple securities between April 15, 2021 and December 20, 2022, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.62 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.48 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.