Cruz reveals DOJ, SEC probe as it releases internal report on pedestrian crash

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GM self-driving subsidiary Cruise said Thursday that federal prosecutors and securities regulators have launched an investigation into the Oct. 2 incident, in which a pedestrian was trapped beneath and then dragged by one of its robotaxis.

The Justice Department and Securities and Exchange Commission investigation, which was revealed as part of an internal report released Thursday, joins numerous other investigations at nearly every level of government, including the California Department of Motor Vehicles, the California Public Utilities Commission . and the National Highway Traffic Safety Administration.

The October 2 incident – ​​and Cruise leadership's decisions in the days that followed – put the company's future at risk. Cruise lost its permit to operate commercially in the state of California – and has since grounded its fleet elsewhere. Its co-founder and CEO Kyle Vogt resigned and about 24% of its employees were laid off in the wake of the incident.

Now, an internal report conducted by Quinn Emanuel shows how a lack of judgment, and missteps by leadership, led to an “us versus them” relationship with regulators and a fixation on According to the 195-page report, which corrects incorrect media statements that the Cruise AV, not Nissan, caused the accident, all were contributing factors to the Cruise's problems.

“This short-sighted focus led Cruz to release information about the Nissan hit-and-run driver to the media, regulators, and other government officials, but omit other important information about the crash. Even after receiving the complete video, Cruz did not correct the public statement, but continued to share incomplete facts and videos about the accident with the media and public. This conduct has led both regulators and the media to accuse Cruise of misleading them.”

Cruz must take decisive action to address these issues to restore trust and credibility.