A federal investigation is underway after Nevada’s safety regulator dropped violations against Boring Co.
Hello, Term Sheeters. It’s Jessica Mathews, filling in for Allie this morning and giving you a quick update on the latest happenings in Las Vegas.
A few weeks ago, I told you about our latest report on Elon Musk’s $5.6 billion tunneling startup, The Boring Company. You may recall that Nevada’s state safety regulator issued three “voluntary” citations against Boring Company, after a training exercise in which two firefighters were burned at a Boring site. Those quotes prompted Boring Co. President Steve Davis to call a former Tesla policy official who now works in Nevada Gov. Joe Lombardo’s office. Within 24 hours of that phone call, Boring executives had arranged a meeting with top state regulators, and the citations were withdrawn.
The removal of the citations (which Nevada OSHA said was because the violations did not meet legal requirements) was never documented in OSHA’s record, and a public record referencing the meeting was altered. (State officials and regulators say no supervisor ever gave the order to delete the meeting minutes.)
A few weeks after everything happened, Boring Company was caught illegally dumping sewage into manholes around Las Vegas. A Boring manager was specifically called out in documents for allegedly “feigning compliance” with county inspectors, only to resume dumping waste as soon as he thought the inspectors had left the site.
These two stories caused an uproar in Las Vegas. Residents questioned their representatives during town halls and town hall meetings. And Nevada Congresswoman Dina Titus sent a demand letter to Gov. Lombardo, urging him to hold Elon Musk’s tunneling company accountable, make public the company’s meetings with Nevada OSHA and answer a series of questions about how the investigation was conducted.
Now, as I reported this week, federal OSHA has opened an investigation into the State of Nevada’s OSHA plan. Federal OSHA received what’s called a “CASPA” complaint, a complaint about the administration of the state plan, after our article, and the agency decided it warranted federal review.
These investigations are important and are intended to evaluate whether a state plan is at least as effective as federal OSHA, a requirement of U.S. law. The last time Nevada OSHA faced this level of federal (and public) scrutiny was in 2008, when the Las Vegas Sunshine reported on the high mortality rate among construction workers on the Las Vegas Strip, amid lax enforcement of Nevada OSHA regulations. Federal regulators launched a “special study” of Nevada OSHA the following year, which found “a number of serious concerns” in the program and led to corrections in oversight and changes to its program.
We will closely monitor the results of this investigation once federal OSHA completes its review.
In the meantime, thanks for following along.
Jessica Mathews
X: @jessicakmathews
E-mail: jessica.mathews@fortune.com
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ADVENTURE OFFERS
– Radiantan El Segundo, Calif.-based developer of a portable nuclear microreactor designed to replace diesel generators, has raised $300 million in Series D funding. Draper Associates And Booster Venture capital led the round and were joined by others.
– Wella London, UK-based employee benefits platform has raised $27.5 million in funding. Mercia Businesses led the round and was joined by existing investors Atomic, Cherry Businesses, DN Capitaland others.
– Anchora London, UK-based AI-based patent operating system has raised $20 million in Series A funding. Atomic led the tour and was joined by Hint Businesses, Northern Lights And Daphne.
– CHICKEN Technologiesa Hayward, Calif.-based developer of smart fire defense technologies has raised $20 million in Series A funding. O’Neil Strategic Capital led the tour and was joined by NSFO, Tanas CapitalAnd Z21 Businesses.
– Arcads.aia San Francisco-based AI-powered platform designed to generate marketing videos, has raised $16 million in seed funding. Eurazéo led the tour and was joined by Alpha Intelligence Capital and others.
– Clarity Pediatricsa San Francisco-based telehealth platform for pediatric chronic care, raised $14.5 million in Series A funding. Jackson Square Businesses led the tour and was joined by City Light Capital, MassMutuelle Catalyst Funds II, Gingerbread Capitaland others.
– Porterlinqa San Francisco-based wireless heart monitor developer, raised $14 million in Series A funding. AIX Businesses led the tour and was joined by Spring tide, Berkeley Catalyst Funds, Bright landscape Partners, Amino Capitaland others.
– Without roaminga global mobile network operator based in San Francisco, raised $12 million in Series A funding from Shrouq, Révo Capital, FinbergAnd FRIDAY.
– AIRa New York-based, AI-powered credit intelligence platform, raised $6.1 million in seed funding. Established Businesses And Lerate Hippeau led the round.
PRIVATE-HORSE RIDING
– GI Partners agreed to acquire Netwatchan AI-based security services provider based in Lake Forest, California. Financial terms were not disclosed.
– Initial Bandsupported by TPGacquired Money Tribe Mediaa platform based in Los Angeles, California and New York, for building YouTube and podcast businesses. Financial terms were not disclosed.
– Pro Sitessupported by Pont-Rock Growth Equityacquired EngineeringVeterinariansa veterinary marketing and engagement company based in San Diego, California. Financial terms were not disclosed.
– StayTerrasupported by Garnett Station Partners And Bessemer Adventure Partnersacquired a majority stake in Cape and Coast Premier Propertiesa luxury vacation rental management company based in Cape San Blas, Florida. Financial terms were not disclosed.
– FACING Associates acquired a majority stake in PairSoftan automation and payment solutions provider based in Miami, Florida. Financial terms were not disclosed.
– Wateraliasupported by Ambientacquired Aquateca water and wastewater management company based in Victoria, Australia. Financial terms were not disclosed.
OUTPUTS
– IFS agreed to acquire Softona warehouse management software company based in Reston, Virginia, Warbourg Pincus. Financial terms were not disclosed.
– TJC acquired Lindsay Prefabricateda manufacturer of precast concrete and steel products based in Gainesville, Florida, Intermediate terrain Capital. Financial terms were not disclosed.
IPOS
– Andersen Groupa San Francisco-based tax and financial advisory firm, raised $176 million in an offering of 11 million shares priced at $16 on the New York Stock Exchange.
FUNDS + FUNDS OF FUNDS
– Mountains Rim Capitala Nashville, Tennessee-based private equity firm has raised $208 million for its first fund focused on manufacturing, distribution and business services companies.
PEOPLE
– Automotive technology Businessesa Menlo Park, Calif.-based venture capital firm hired Microphone Abbott as a venture capital partner. Formerly he was with General Engines. The company also promoted David THE to the operating partner.
– General Atlantica private equity firm based in New York, promoted Cornelia Gomez, Hilary Lindemann, Ryan McGrath, Well Newman, Sudeep PodcastsAnd Varun Talukdar.
