Current:Home > StocksGM's driverless car company Cruise is under investigation by several agencies -Trailblazer Capital Learning
GM's driverless car company Cruise is under investigation by several agencies
View
Date:2025-04-24 22:30:07
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! (17)
Related
- Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
- Ohio St., UGA, Michigan, FSU are CFP top 4. NCAA investigation of Wolverines not considered in rank
- Largest Christian university in US faces record fine after federal probe into alleged deception
- Eruption of Eurasia’s tallest active volcano sends ash columns above a Russian peninsula
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- Antisemitism policies at public city colleges in New York will be reviewed, the governor says
- Belarusians who fled repression face new hurdles as they try to rebuild their lives abroad
- Henry Winkler on being ghosted by Paul McCartney, that 'baloney' John Travolta 'Grease' feud
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Watch this sweet, paralyzed pug dressed as a taxicab strut his stuff at a Halloween parade
Ranking
- Questlove charts 50 years of SNL musical hits (and misses)
- Shaquille O'Neal 'was in a funk' after retiring from NBA; deejaying as Diesel filled void
- Why Denise Richards Doesn't Want Daughter Sami Sheen to Get a Boob Job
- 2 killed in Russian attacks in eastern Ukraine that also damage Kherson city center
- Small twin
- Adam Johnson Tragedy: Authorities Investigating Ice Hockey Player's Death
- Sherri Shepherd Invites You to Her Halloween Renaissance With Must-See Beyoncé Transformation
- On an airplane, which passenger gets the armrests?
Recommendation
Person accused of accosting Rep. Nancy Mace at Capitol pleads not guilty to assault charge
'It's the Great Pumpkin, Charlie Brown': How to watch on Halloween night
Hong Kong leader John Lee will miss an APEC meeting in San Francisco due to ‘scheduling issues’
Hamas releases video of Israeli hostages in Gaza demanding Netanyahu agree to prisoner swap
The Grammy nominee you need to hear: Esperanza Spalding
Blue Ridge Parkway closed near Asheville after visitors try to feed, hold black bear
As Trump tried to buy Buffalo Bills, bankers doubted he’d get NFL’s OK, emails show at fraud trial
Israel targets Hamas' 300-mile tunnel network under Gaza as next phase in war begins