TuSimple Legal Chief Leaves Truck Startup After Investor Lawsuit

TuSimple Holdings Inc., a company accused in a lawsuit of suppressing safety concerns about autonomous truck technology ahead of an initial public offering, is parting ways with top lawyer James Mullen.

Mullen on Aug. 31 revealed his intention to resign, the company disclosed in a Tuesday securities filing. Susan Marsch, a former legal chief at Flex Ltd., will be interim general counsel until TuSimple names a permanent successor, the San Diego-based company said.

TuSimple and several of its executives, including Mullen, are listed as defendants in a civil complaint filed Aug. 31 by shareholder Austin Dicker in a federal district court in San Diego. Dicker filed the case after a news report about TuSimple’s safety culture caused its stock price to slip.

“I can unequivocally state that my departure has no connection, correlation, or is any way related to the lawsuit brought by Austin Dicker,” Mullen said via email.

TuSimple didn’t respond to a request for comment. Outside counsel has not yet entered an appearance for the company, according to the docket in Dicker’s lawsuit.

TuSimple hired Mullen, former acting administrator and chief counsel for the Federal Motor Carrier Safety Administration, in late 2020 as chief administrative, risk, and legal officer. The company raised roughly $1.4 billion in an IPO last year.

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian advised TuSimple on its IPO last year, while Davis Polk & Wardwell took the lead for underwriters on the listing, which generated at least $1.5 million in legal fees and expenses, according to a securities filing.

Dicker’s lawsuit accuses TuSimple and underwriters for the company’s IPO of failing to disclose that the company “was rushing the testing of its autonomous driving technology in order to deliver driverless trucks to the market ahead of its more safety-conscious competitors.”

Separation and Compensation

A separation agreement between TuSimple and Mullen filed Tuesday states that the company agreed to waive its right to require the repayment of a $500,000 retention bonus paid earlier this year to its now former top legal executive.

TuSimple has also agreed to give Mullen a year of base salary continuation, a year of subsidized health benefits, and an additional year of vesting for his outstanding equity awards. Mullen will relinquish all claims against the company.

TuSimple’s most recent annual proxy statement states that Mullen earned almost $9.4 million in total compensation during 2021, a substantial increase from the nearly $1.5 million pay package he received the year prior.

Mullen’s 2021 pay package includes $350,000 in base salary; $179,000 in non-equity incentive plan compensation; and more than $8.8 million in stock awards. He currently owns TuSimple stock valued at $290,000, according to Bloomberg data.

Securities filings show that Mullen has sold off about $334,500 in TuSimple stock since the company went public last year.

Mullen said he’s “not in a position to announce” his next career move.

“I am excited to start the next chapter in my professional career,” Mullen said in a statement posted to his LinkedIn profile late Tuesday. “It has been a great ride, and more to come on what’s next.”