Hou’s declaration to the court, filed on Monday, is the latest escalation in the battle between TuSimple and some of its shareholders, over the company’s attempts to use investor capital to fund a new AI-generated animation and video game business in China.
This is the first time Hou — who was ousted from his role as CEO in 2022 — has publicly accused TuSimple and its leaders of funneling assets toward animation and gaming businesses owned by or with direct ties to Mo Chen, TuSimple co-founder and chairman of the board, under the guise of a business pivot. Hou also argued the company violated SEC regulations by neither informing nor gaining approval from shareholders before changing its business direction or transferring funds to China.