Current:Home > ScamsGM's driverless car company Cruise is under investigation by several agencies -Dynamic Money Growth
GM's driverless car company Cruise is under investigation by several agencies
View
Date:2025-04-15 17:32:35
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! (91)
Related
- Global Warming Set the Stage for Los Angeles Fires
- Round 2 in the Trump-vs-Mexico matchup looks ominous for Mexico
- Michael Grimm, former House member convicted of tax fraud, is paralyzed in fall from horse
- South Carolina does not set a date for the next execution after requests for a holiday pause
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Is Veterans Day a federal holiday? Here's what to know for November 11
- NASCAR Championship race live updates, how to watch: Cup title on the line at Phoenix
- 32 things we learned in NFL Week 10: Who will challenge for NFC throne?
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- A Pipeline Runs Through It
Ranking
- Retirement planning: 3 crucial moves everyone should make before 2025
- Beyoncé's Grammy nominations in country categories aren't the first to blur genre lines
- Michael Jordan and driver Tyler Reddick come up short in bid for NASCAR championship
- Fire crews on both US coasts battle wildfires, 1 dead; Veterans Day ceremony postponed
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- IAT Community Introduce
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Something Corporate
- Jordan Chiles Reveals She Still Has Bronze Medal in Emotional Update After 2024 Olympics Controversy
Recommendation
Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
South Carolina does not set a date for the next execution after requests for a holiday pause
Ashton Jeanty stats: How many rushing yards did Boise State Heisman hopeful have vs Nevada
Arizona Supreme Court declines emergency request to extend ballot ‘curing’ deadline
Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
College football top five gets overhaul as Georgia, Miami both tumble in US LBM Coaches Poll
Mississippi Valley State football player Ryan Quinney dies in car accident
Michael Jordan and driver Tyler Reddick come up short in bid for NASCAR championship