If you invested in Velodyne Lidar, Inc. between 2020 and 2021, you may be entitled to a portion of a multi-million dollar class action settlement. This legal resolution follows allegations that the company made misleading statements regarding its business operations and internal controls. Understanding the settlement process is essential for recovering potential losses from your investment.
What Is the Velodyne Lidar Settlement?
The Velodyne Lidar settlement is a $27.5 million fund established to resolve a securities class action lawsuit. The lawsuit alleged that the company and certain executives violated federal securities laws by providing inaccurate information to investors. Specifically, the claims centered on the company’s internal corporate governance and the transparency of its business dealings.
By reaching this settlement, the company avoids a lengthy trial while providing a path for eligible shareholders to receive compensation. It is important to note that the defendants have not admitted to any wrongdoing, but they have agreed to the payout to settle the dispute.
Who Is Eligible for Compensation?
Not everyone who has ever owned Velodyne stock is eligible for a payment. To qualify for a piece of the settlement, you must meet specific criteria related to when you purchased your shares or warrants.
The Class Period
The settlement generally covers individuals and entities who purchased or otherwise acquired Velodyne Lidar, Inc. securities during a specific window. This window, known as the Class Period, runs from July 2, 2020, through March 17, 2021, inclusive.
Eligible Securities
The settlement applies to several types of securities traded during that time. These include:
- Velodyne Lidar common stock
- Velodyne Lidar warrants
- Securities acquired through the merger between Graf Industrial Corp. and Velodyne Lidar
If you sold your shares before the alleged truth was revealed to the market, or if you purchased shares outside of these dates, you might not be eligible to participate in this specific fund.
How to File Your Claim
To receive a payment, you must actively submit a Proof of Claim and Release form. This process can be completed online or via mail, but it must be done before the official deadline set by the court.
Step 1: Gather Your Documentation
Before you start the form, collect all records of your transactions involving Velodyne securities during the Class Period. This includes brokerage statements, trade confirmations, or other official documents that show the date of purchase, the number of shares, and the price paid.
Step 2: Access the Claim Form
Visit the official settlement administrator website to download the form or use their online filing portal. Ensure you are using the legitimate site designated by the court to protect your personal information.
Step 3: Complete the Form Accurately
Fill out your contact information and provide the details of your transactions. You will need to calculate your net loss or gain based on the instructions provided in the “Plan of Allocation” included in the settlement notice.
Step 4: Submit Before the Deadline
Double-check that all information is correct and that you have attached the necessary proof. Submit the form electronically or postmark it by the required date to ensure your claim is considered.
Understanding the Payout Amount
The amount of money you receive depends on several factors. It is rarely a simple refund of your total loss. Instead, the fund is distributed proportionally among all valid claimants.
The Plan of Allocation
The court-approved Plan of Allocation determines how the $27.5 million (minus attorney fees and administrative costs) is divided. Your “Recognized Loss” is calculated based on the timing of your trades and the artificial inflation of the stock price during the Class Period.
Number of Valid Claims
If many people file valid claims, the individual payout per share will be lower. Conversely, if fewer people participate, those who do file may receive a larger portion of the available funds.
Important Deadlines to Remember
In any class action settlement, timing is critical. Missing a deadline usually means you lose your right to claim money or your right to sue the company individually in the future.
- Claim Filing Deadline: This is the most important date for most investors. Forms submitted after this date are typically rejected.
- Exclusion Deadline: If you wish to sue Velodyne Lidar on your own, you must “opt-out” or exclude yourself by this date.
- Objection Deadline: If you disagree with the terms of the settlement or the attorney fees, you must submit your written objection by this time.
- Final Approval Hearing: The court holds a hearing to decide if the settlement is fair, reasonable, and adequate.
What Happens Next?
After the filing deadline passes, the settlement administrator begins the long process of verifying every claim. This can take several months or even over a year, depending on the volume of submissions.
Once all claims are processed and the court gives final approval, the checks or electronic payments are distributed. You should keep your contact information updated with the administrator to ensure you receive your payment when the time comes.
Conclusion
The Velodyne Lidar settlement offers a way for investors to recoup some of the losses they may have suffered during a volatile period for the company. By following the steps to file a claim and keeping an eye on deadlines, you can ensure your rights are protected. If you found this guide helpful, consider exploring our other articles on financial recovery and navigating legal processes for more practical advice.