Outmoded TuSimple co-founder urges courts to block asset switch to China | TechCrunch

Xiaodi Hou, the co-founder and inclined CEO of self-driving trucking startup TuSimple, has entreated a California district court docket to relate a momentary restraining portray to discontinuance the company from transferring its final U.S. sources to China, constant with a most modern court docket filing.

Hou, who plans to examine for a momentary restraining portray in December for the length of the next scheduled court docket hearing, is hoping to aid TuSimple from transferring tens of hundreds and hundreds of greenbacks in money to China. As of September, TuSimple had roughly $450 million in capital. Hou can also be inquiring for expedited discovery of proof to aid his requests for the budge.

Hou’s declaration to the court docket, filed on Monday, is basically the most modern escalation in the fight between TuSimple and a few of its shareholders, over the company’s attempts to employ investor capital to fund a brand fresh AI-generated animation and online sport enterprise in China.

Here’s the most important time Hou — who used to be ousted from his position as CEO in 2022 — has publicly accused TuSimple and its leaders of funneling sources toward animation and gaming firms owned by or with reveal ties to Mo Chen, TuSimple co-founder and chairman of the board, below the guise of a enterprise pivot. Hou also argued the company violated SEC regulations by neither informing nor gaining approval from shareholders earlier than altering its enterprise route or transferring funds to China.

Hou now heads a fresh self reliant trucking startup in Texas

TuSimple, as soon as valued at $8.5 billion after its 2021 IPO, confronted setbacks that ended in its U.S. shutdown and delisting in January 2024. The company’s talked about purpose used to be to commercialize its AV technology in China. Nonetheless because the three hundred and sixty five days progressed, TuSimple slashed its personnel, ceased self-driving operations, and commenced hiring personnel to handle jobs connected to AI gaming and animation.

Shareholders sent a letter to the board in August after discovering out TuSimple used to be placing resources toward AI gaming and animation. The board responded a couple weeks later by publicly pronouncing the fresh enterprise unit.

Hou this week entreated the court docket to relate a momentary restraining portray after noticing a filing by TuSimple China that signaled the company used to be about to switch money (or already had) out of the US. Two TuSimple China subsidiaries final week registered an expand in sources collectively worth $150 million, constant with Hou’s declaration and knowledge from public filings.

“These filings command a suspicious expand in registered sources between these two subsidiaries in sooner or later as a precursor to clear quantity of cash switch from U.S. to China,” reads the declaration. “Basically the likely position is that these filings in China had been the preparatory steps earlier than TuSimple U.S. transfers money to those subsidiaries in China.”

Hou added that such clear money transfers are “beyond usual course of enterprise” and connected to “TuSimple China’s heyday of operation when it used to be working a clear self reliant truck lickety-split in Shanghai” and had round 700 workers on its payroll. As of September, TuSimple China had round 200 workers.

The window of assorted for shareholders treasure Hou to rep what they need — which is for TuSimple to liquidate so they will recover about a of their losses — is narrowing.

TuSimple is in a gray position when it comes to enforcement from the Securities and Replace Charge. Whereas TuSimple delisted earlier this three hundred and sixty five days, the company is soundless registered with the SEC and thus topic to U.S. scrutiny. As soon as the money goes to China, shareholders in the U.S. will develop no longer gain any recourse to claw abet funds from their customary investment.

TechCrunch has reached out to the SEC to learn if the company is investigating TuSimple in relation to shareholder complaints.

TuSimple did no longer without delay acknowledge to TechCrunch’s seek info from for observation.