TuSimple Holdings Inc.
|Company Name||TuSimple Holdings Inc.|
|Class Period||April 15, 2021 to October 31, 2022|
|Lead Plaintiff Motion Deadline||January 09, 2023|
On April 15, 2021, TuSimple conducted its initial public offering (“IPO”), selling 33.8 million class A common shares at $40.00 per share.
On October 30, 2022, The Wall Street Journal published an article reporting that TuSimple was being investigated by the FBI and SEC “into whether it improperly finances and transferred technology into a Chinese startup.”
Then, on October 31, 2022, TuSimple announced that its Board of Directors had terminated the Company’s Chief Executive Officer, President, and Chief Technology Officer, also removing him from his position as Chairman of the Board, effective immediately.
On this news, TuSimple’s stock fell $2.88 or 45.6%, to close at $3.43 per share on October 31, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) TuSimple was engaged in undisclosed related party transactions with Hydron, a company founded by the Company’s co-founder, Executive Chairman, and director; (2) TuSimple shared confidential information and/or proprietary technology with Hydron without Board approval or informing regulators or TuSimple shareholders; (3) TuSimple failed to disclose the Board’s internal investigation, which commenced in July 2022, into TuSimple’s ties to Hydron; (4) the aforementioned conduct enhanced the likelihood of regulatory scrutiny and investigatory action toward the Company; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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