The California DMV says it suspended Cruise's permits to operated driverless taxis in San Francisco because the company failed to share footage of one of its cars dragging a woman after a collision.
The woman had been struck by a hit-and-run driver before landing in the path of a self-driving Cruise car earlier this month.
State officials claimed that Cruise showed the DMV and California Highway Patrol onboard video of its car braking hard and stopping. But, Cruise failed to share footage showing the pedestrian being dragged as the car maneuvered to the side of the road, according to the state.
The state said it learned about this additional video from another government agency.
Cruise's cars "are not safe for public operation," and the company "misrepresented" the safety of its fleet, the DMV alleged.
San Francisco Mayor London Breed said she welcomes the technology if it can be deployed responsibly.
""I also think it’s important that we balance that with the appropriate safety measures to ensure that we’re doing everything we can to not oversaturate our streets when we’re not necessarily read," Breed said.
Cruise has disputed the state's claims, insisting instead that it showed all video from the crash to the DMV.