TuSimple cofounder resigns, accused of poaching staff for new venture

News Summary

  • At the same time, four independent directors were removed from the board, and Chen was appointed executive chairman of the board.While TuSimple likely hopes Hou’s resignation will help the company close the chapter on national security investigations, TuSimple has other concerns on its plate.
  • The Biden administration is actively working to prevent U.S. technology from advancing China’s military power, including the use of autonomous vehicles.That investigation is still ongoing, and it has prompted potential criminal charges.
  • TuSimple is still bringing on a new auditor after KPMG resigned due to the company’s risk factor, sources say.
  • CFIUS reviews foreign investments for national security concerns and can impose safeguards and recommend that the president block certain investments.
  • Earlier this month, the company received a non-compliance warning from the Nasdaq for failing to file its fourth-quarter and full-year 2022 financial results in time.
  • The company hopes to report earnings by May, which is the deadline the Nasdaq provided to regain compliance.
TuSimples cofounder, Xiaodi Hou, resigned from the companys board of directors last week amid an internal investigation which sought to verify claims that Hou approached TuSimple employees about l [+3284 chars]