TuSimple co-founder resigns after being accused of kidnapping staff for new venture

TuSimple co-founder Xiaodi Hou resigned from the corporate’s board final week after an inside investigation sought to substantiate allegations that Hou had approached TuSimple workers to go away the corporate to affix his new enterprise. SEC filing.

Sources aware of the matter instructed TechCrunch {that a} “whistleblower” knowledgeable senior administration that Hou had requested workers to affix an organization he based previously few months. Sources say Hou pressured some workers to cease working onerous, both as a result of they’d quickly be part of his new enterprise or as a result of he wished to see the autonomous truck firm fail with out him.

TuSimple launched an inside investigation by which Hou confirmed that not less than two workers – prime expertise on “high-tech” groups – had utilized, however the co-founder resigned from the board earlier than TuSimple might full the investigation.

TuSimple has not determined whether or not to proceed the investigation, but when it does, will probably be to find out if different workers have been compromised, in response to a supply aware of the matter.

Hou didn’t reply to TechCrunch’s requests for remark, however the co-founder might definitely be accused of getting an ax that must be crushed. In November, TuSimple’s board of administrators found that TuSimple had transferred confidential info to Hydron, a hydrogen-powered trucking firm led by TuSimple co-founder and controlling proprietor Mo Chen and backed by Chinese language traders. , fired from the positions of chairman and CTO. .

On the time, Hou stated he was dismissed “for no motive” and described the board’s processes and outcomes as “questionable at finest”.

“Because the info come to mild, I’m assured that my selections as CEO and President and our imaginative and prescient for TuSimple might be validated,” Hou stated. LinkedIn post in November.

TuSimple’s board of administrators performed its personal investigation in response to an investigation by the Committee on Overseas Investments within the US (CFIUS). The CFIUS evaluations overseas funding for nationwide safety considerations and may implement safeguards and advise the president to dam sure investments. The Biden administration is actively working to stop US know-how from advancing China’s army energy, together with the usage of autonomous autos.

This investigation continues to be ongoing and has led to potential costs. Representatives who had been a part of the CFIUS evaluate panel final month Called the Ministry of Justice To contemplate accusations of financial espionage towards Hou and Chen, in addition to present CEO Cheng Lu.

Lu served as CEO of TuSimple from September 2020 to March 2022 earlier than being sacked. He returned to the helm in November. On the identical time, 4 impartial administrators had been faraway from the board and Chen was appointed because the chief govt officer of the board.

Whereas TuSimple hopes Hou’s resignation will assist the corporate shut down the division on nationwide safety investigations, TuSimple has different considerations forward. Earlier this month, the corporate received an incompatibility warning For not presenting its fourth quarter and 2022 monetary outcomes on time from the Nasdaq. Sources say TuSimple continues to be bringing in a brand new auditor after KPMG resigned as a result of firm’s danger issue. The corporate hopes to report earnings by Could, the deadline Nasdaq supplies to revive compliance.