Velodyne Lidar (VLDR) $27.5M Investor Settlement

Velodyne Lidar ($VLDR) has decided to settle $27.5M with investors to end claims related to the resignation of its founder and Chairman and its CMO.

Outline:

In 2021, Velodyne removed its founder and Chairman, along with its CMO, after an investigation found their "inappropriate behavior." Following this news, $VLDR dropped, and Velodyne faced a lawsuit from investors.

Timeline:

• On February 22, 2021: Velodyne announced it removed its founder and Chairman and its CMO after an investigation by the Audit Committee.
• Following this news, $VLDR fell by 23% the next day.
• On March 2, 2021: $VLDR stockholder filed a claim against Velodyne based on this undisclosed internal scandal.

Background:

On February 22, 2021, Velodyne announced it removed its founder and Chairman and its CMO after an investigation by the Audit Committee.

The investigation found that Mr. Hall and Ms. Hall "behaved inappropriately with regard to board and company processes, and failed to operate with respect and honesty in their dealings with company officers and directors."

However, Ms. Hall described the situation as an ambush, stating they had no chance to defend themselves.

After that, Velodyne responded, saying the Halls were informed of the investigation and had ample time to share their views before the board's decision.

Besides, Velodyne said that: “The Board also formally censured both Mr. Hall and Ms. Hall, and directed them both to receive appropriate remedial training.”

Velodyne didn't disclose the details of the resignation and refused to provide any comments on this.

Velodyne recently decided to resolve the suit and settle $27.5M with investors to end claims related to this internal scandal and the Halls resignation.