On February 22, 2021, Velodyne Lidar announced that it was immediately replacing David Hall, the Company’s founder and former Chairman of the Board of Directors, and Marta Thoma Hall, the Company’s former Chief Marketing Officer. In this announcement, Velodyne Lidar wrote that these moves followed an investigation led by the Company’s Audit Committee and aided by Keker, Van Nest & Peters LLP that began in December 2020. Velodyne Lidar’s announcement continued that “[t]he investigation concluded that Mr. Hall and Ms. Hall each behaved inappropriately with regard to certain Board and Company processes, and failed to operate with respect, honesty, integrity, and candor in their dealings with Company officers and directors.” In addition, Velodyne Lidar’s Board of Directors formally censured Mr. Hall and Ms. Hall. The market was stunned by this news, with shares plunging approximately 15% in one day.
A lawsuit has been filed against Velodyne Lidar and two of its executives in the U.S. District Court for the Northern District of California. The lawsuit is captioned Moradpour v. Velodyne Lidar, Inc., et al., No. 3:21-cv-01486 (N.D. Cal.).