Luminar Technologies ($LAZR) Investor Settlement

Luminar Technologies has reached a tentative settlement to resolve investor claims that it misrepresented its core lidar chip technology at its first-ever Investor Day.

Outline:

On February 28, 2023, Luminar unveiled its new Iris+ lidar sensor and showcased a slide depicting what it represented as its proprietary photonic integrated circuit (PIC). On March 17, 2023, Forbes reported that Lidwave had accused Luminar of passing off Lidwave's PIC as its own and had notified the SEC of the alleged misrepresentation. Luminar's stock fell 9.09% over the following two trading days. The case has now reached a tentative settlement.

Timeline:

• December 22, 2022: Luminar announced it would hold its first-ever Investor Day on February 28, 2023.

• February 28, 2023: At Luminar Investor Day, CEO of Luminar Semiconductor Mike McAuliffe presented a slide ("Common Platforms Drive Scale") featuring an image represented as Luminar's proprietary PIC chip.

• March 1, 2023: Luminar's stock rose 2% following the positive market reaction to Investor Day, closing at $9.06.

• March 3 and March 6, 2023: Luminar's stock reached a Class Period high of $9.89.

• March 14, 2023: Lidwave sent Luminar a cease-and-desist letter demanding removal of the image and notified the SEC of the alleged misuse.

• March 17, 2023: Forbes published an article reporting Lidwave's accusation that Luminar had used an image of Lidwave's PIC to represent its own technology; Luminar removed and replaced the image after being contacted by Forbes.

• March 20, 2023: Luminar's stock closed at $7.80, down 9.09% over two consecutive trading days.

Background:

Luminar Technologies is an automotive technology company developing lidar (light detection and ranging) sensors for autonomous and driver-assistance vehicle systems. A key component of Luminar's technology is its photonic integrated circuit (PIC), a chip that generates and steers the laser beams used in its lidar sensors.

In February 2023, Luminar consolidated three chip-design subsidiaries into a new unit, Luminar Semiconductor, and positioned its in-house PIC development as central to its competitive advantage and cost structure.

At its February 28, 2023 Investor Day, Luminar's CEO of Luminar Semiconductor, Mike McAuliffe, presented an image purporting to show Luminar's advanced, proprietary PIC as part of a slide on the company's manufacturing capabilities. Investors allege this image was in fact a picture of a far more sophisticated chip developed by Lidwave, a private Israeli lidar-on-a-chip startup, and that Luminar's actual PIC was considerably less advanced by comparison. Luminar did not have permission to use Lidwave's chip image and had no agreement with Lidwave to use its technology.

The alleged deception was not corrected until Lidwave, after Luminar failed to respond to a cease-and-desist letter, went to both the SEC and the press. On March 17, 2023, Forbes published an article exposing the discrepancy, after which Luminar replaced the image with a photo of its own, comparably cruder PIC. Luminar's stock fell 9.09% over the following two trading days. The case has now reached a tentative settlement.

What Can Investors Expect Now?

Luminar Technologies has reached a tentative settlement to resolve investor claims that it misrepresented its core lidar chip technology at its first-ever Investor Day.

If you were damaged due to this situation, you can check if you are eligible and get more details in the FAQ section once the settlement is finalized.