Current:Home > reviewsGM's driverless car company Cruise is under investigation by several agencies -Clarity Finance Guides
GM's driverless car company Cruise is under investigation by several agencies
View
Date:2025-04-15 00:24:31
The GM-owned driverless car company Cruise is under investigation by several federal agencies for an October crash that seriously injured a pedestrian.
The company on Thursday said it is being investigated by the National Highway Traffic Safety Administration, the U.S. Department of Justice, and the U.S. Securities and Exchange Commission, in addition to California agencies. Cruise said it is "fully cooperating" with the regulatory and enforcement agencies that have opened the investigations.
In the Oct. 2 crash, a vehicle struck a pedestrian and sent her flying into the path of the self-driving Cruise car. The Cruise vehicle then dragged the pedestrian for another 20 feet, causing serious injuries.
Cruise, which owns a fleet of robotaxis in San Francisco, then failed to adequately inform regulators of the self-driving vehicle's full role in the incident. Since then, Cruise's driverless ride-hailing services have been paused in all markets. The CEO resigned, along with other senior executives.
Cruise also hired outside law firm Quinn Emanuel Urquhart & Sullivan to investigate the incident.
In a scathing report, released Thursday, the law firm said Cruise's interactions with regulators revealed "a fundamental misapprehension" of the company's obligations to the public.
The company says it accepts the law firm's conclusions and is focused on "earning back public trust."
"Poor leadership" cited as one reason for the Cruise's failing
In its initial explanations of the crash to the public and to regulators, Cruise did not acknowledge that the robotaxi dragged the pedestrian. Instead, it focused on the fact that the collision was originally caused by another vehicle.
The law firm did not conclude that Cruise intentionally misled regulators. The report states that Cruise did attempt to play a full video for regulators that showed the pedestrian being dragged, but "internet connectivity issues" repeatedly caused the video to freeze. And instead of pointing out the video's significance, "Cruise employees remained silent, failing to ensure that the regulators understood what they likely could not see."
Letting a video "speak for itself" when the video couldn't even play didn't quite rise to the level of concealing the truth, the law firm concluded. But the report said it revealed a lot about Cruise's corporate culture.
"The reasons for Cruise's failings in this instance are numerous: poor leadership, mistakes in judgment, lack of coordination, an 'us versus them' mentality with regulators, and a fundamental misapprehension of Cruise's obligations of accountability and transparency to the government and the public," the law firm wrote.
veryGood! (2)
Related
- Small twin
- President Joe Biden tests positive for COVID-19 while campaigning in Las Vegas, has ‘mild symptoms’
- NHL offseason tracker 2024: Hurricanes, Evgeny Kuznetsov to terminate contract
- Prime Day Is Almost Over: You’re Running Out of Time To Get $167 Worth of Peter Thomas Roth for $52
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Thailand officials say poisoning possible as 6 found dead in Bangkok hotel, including Vietnamese Americans
- Don't believe Texas is ready for the SEC? Nick Saban does. So should you.
- Caitlin Clark has 19 assists break WNBA record in Fever’s 101-93 loss to Wings
- The Daily Money: Spending more on holiday travel?
- Green agendas clash in Nevada as company grows rare plant to help it survive effects of a mine
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Kris Jenner Shares Results of Ovary Tumor After Hysterectomy
- US judge dismisses Republican challenge over counting of post-Election Day mail ballots in Nevada
- Book excerpt: Night Flyer, the life of abolitionist Harriet Tubman
- Buckingham Palace staff under investigation for 'bar brawl'
- Movie armorer seeks dismissal of her conviction or new trial in fatal shooting by Alec Baldwin
- Jack Black's bandmate, Donald Trump and when jokes go too far
- Alabama inmate Keith Edmund Gavin to be 3rd inmate executed in state in 2024. What to know
Recommendation
Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
‘One screen, two movies': Conflicting conspiracy theories emerge from Trump shooting
John Deere drops diversity initiatives, pledges to no longer join 'social or cultural awareness parades'
Delay of Texas death row inmate’s execution has not been the norm for Supreme Court, experts say
NFL Week 15 picks straight up and against spread: Bills, Lions put No. 1 seed hopes on line
US Army honors Nisei combat unit that helped liberate Tuscany from Nazi-Fascist forces in WWII
Montana judge: Signatures of inactive voters count for initiatives, including 1 to protect abortion
Chicago Sky trade Marina Mabrey to Connecticut Sun for two players, draft picks