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VLDR.US
id: 1116

Velodyne Lidar (VLDR) $27.5M Investor Settlement

$27,500,000
Cash Settlement
N.D. California
Court
3:21-cv-01486
Case number
07/02/2020
Class period Start
03/17/2021
Class period End
09/11/2024
Claim deadline
Velodyne Lidar ($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.

What can investors expect now?

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.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.24
Filing date
03/02/2021
Lead Plaintiff Deadline
05/03/2021
Plaintiffs
Diane Smith
Attorneys
Kahn Swick & Foti LLP (San Francisco, CA)
Defendants
Anand Gopalan, Andrew Hamer
Judge
Hon. Susan Illston
Administrator
EPIQ
Attorney fee
$315,000
Trades matching type
FIFO
Disbursement date
02/10/2026

Frequently Asked Questions

Who is eligible for this settlement?

All persons who purchased Velodyne publicly traded securities between July 2, 2020 and March 17, 2021, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How much can you recover?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.24 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.96 per share.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.