TuSimple delisted from Nasdaq in January, fewer than three years after raising $1.35 billion in an April 2021 initial public offering.TuSimple reached a $189 million settlement of a lawsuit accusing the self-driving truck technology company of defrauding shareholders by overstating its safety record and concealing three insiders’ control of a Chinese trucking rival.
All defendants, including the company, various TuSimple founders and executives, and TuSimple’s bank underwriters, denied wrongdoing in agreeing to settle. The company delisted from Nasdaq in January, fewer than three years after raising $1.35 billion in an April 2021 initial public offering.Shareholders said TuSimple misrepresented the safety of its technology prior to the IPO, with an eye toward addressing the kinks on U.S. roads and transferring the improved technology to the Chinese rival, Hydron.
Lawyers for the shareholders may seek up to 25% of the settlement amount, or about $47 million, for legal fees.