TuSimple Co-Founder Fires Board That Weeks Before Ousted Him

 "TuSimple was founded in 2015 and went public in April 2021, raising more than $1 billion at an $8.5 billion valuation. The company is developing autonomous-driving systems that it aims to integrate into big rigs manufactured by some of the world's largest truck makers. Its partners include Navistar International Corp. and Traton, a publicly listed Volkswagen AG subsidiary that makes trucks.                                                                                                                                                   Top of Form

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The embattled co-founder of TuSimple Holdings Inc. has ousted the self-driving trucking company's board after it fired him last month, according to a Thursday securities filing.

The extraordinary move follows the board's decision on Oct 30 to oust Xiaodi Hou, who had also been TuSimple's chief executive, from his roles at the company. Board members said they made the move in connection with a continuing investigation they were conducting into TuSimple's relationship with a Chinese startup called Hydron Inc.

Mr. Hou's termination was announced the day after The Wall Street Journal reported that TuSimple and its leadership, principally Mr. Hou, faced investigations by the Federal Bureau of Investigation, Securities and Exchange Commission and Committee on Foreign Investment in the U.S. -- a national-security panel known as Cfius -- into whether the company improperly financed and transferred technology to Hydron, according to people with knowledge of the matter.

In a statement after his firing, Mr. Hou criticized the board and said that "As the facts come to light, I am confident that my decisions as CEO and Chairman, and our vision for TuSimple, will be vindicated."

Late Thursday, Cheng Lu, the company's new chief executive, said: "We've dealt with turmoil this past year, and it's critical that we stabilize operations, regain the trust of our stakeholders and provide the talented team at TuSimple with the support and leadership they deserve." Mr. Lu had served as TuSimple's CEO until March, when Mr. Hou took over.

Mr. Hou, who remained a major shareholder, fired the board in concert with fellow co-founder and major shareholder Mo Chen, Thursday's filing says. Mr. Chen is the founder of Hydron.

Neither Mr. Chen nor a representative for Mr. Hou responded to requests for comment. The filing said the company was working to regain compliance with stock exchange listing rules requiring independent directors.

One of the newly fired board members is a former U.S. national-security official who had been installed as part of a prior agreement with Cfius. Mr. Lu said in a statement to the Journal that the company is "actively working" to appoint a new security director to the board in accordance with its agreement with the panel. The Treasury Department, which leads Cfius, didn't respond to a request for comment.

The board firings by Messrs. Hou and Chen left Mr. Hou as the sole director, the filing says. Mr. Hou then appointed Messrs. Chen and Lu to the board, it says. The three then moved to replace Ersin Yumer, the interim CEO who had taken over for Mr. Hou less than two weeks ago, with Mr. Lu, according to the disclosure.” [1]

1.  TuSimple Co-Founder Fires Board That Weeks Before Ousted Him
O'Keeffe, Kate; Somerville, Heather. 
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 11 Nov 2022: B.4.