If you invested in Velodyne Lidar, Inc. during a specific window of time, you may be eligible for a payment from a multi-million dollar class action settlement. Understanding how to navigate the claims process is essential for recovering losses you may have incurred. This guide provides a clear, step-by-step overview of the settlement, who qualifies, and how to ensure your claim is filed correctly.
Understanding the Velodyne Lidar Class Action Settlement
The Velodyne Lidar settlement is the result of a securities class action lawsuit. The legal action alleged that the company made misleading statements or failed to disclose important information regarding its business operations and internal controls.
Specifically, the lawsuit focused on the period surrounding the merger between Velodyne Lidar and Graf Industrial Corp. Plaintiffs argued that investors were not fully informed about certain conflicts of interest and financial outlooks, leading to artificial inflation of stock prices.
To resolve these allegations without the uncertainty of a trial, a settlement fund of $27.5 million was established. This money is intended to compensate eligible investors who purchased or acquired Velodyne Lidar securities and suffered financial losses when the stock price later declined.
Determining Your Eligibility
Not everyone who has ever owned Velodyne stock is eligible for a payout. Eligibility is strictly defined by the “Class Period,” which is the timeframe during which the alleged misleading statements occurred.
The Class Period
To be considered a member of the settlement class, you generally must have purchased or otherwise acquired Velodyne Lidar, Inc. (formerly known as Graf Industrial Corp.) common stock or warrants during the following period:
- Start Date: July 2, 2020
- End Date: March 17, 2021
If you bought shares before or after these dates, you are likely not part of this specific settlement. Additionally, certain individuals associated with the company, such as officers and directors, are excluded from participating.
Calculating Your Loss
The amount of money you receive depends on the “Plan of Allocation” approved by the court. This formula takes into account the number of shares you purchased, the price you paid, and whether you sold those shares or held onto them after the truth was allegedly revealed to the market.
Step-by-Step Guide to Filing a Claim
Filing a claim is the only way to receive a payment from the settlement fund. The process is straightforward, but it requires attention to detail and accurate record-keeping.
1. Obtain the Proof of Claim Form
The first step is to get the official Proof of Claim and Release form. This document is usually mailed to known shareholders, but if you didn’t receive one, you can download it from the official settlement administrator’s website. Ensure you are using the official form to avoid delays.
2. Gather Your Investment Records
You will need to provide proof of your transactions. This is the most critical part of the application. Collect the following documents for the Class Period:
- Brokerage statements showing purchases and sales.
- Trade confirmation slips.
- Detailed records of the number of shares held at the beginning and end of the Class Period.
If you no longer have these records, you may need to contact your financial advisor or brokerage firm to request historical statements.
3. Complete the Form Accurately
Fill out every section of the form. You will be asked for your contact information, Social Security number or Taxpayer ID, and a detailed list of your transactions. Double-check all dates and share counts to ensure they match your supporting documentation.
4. Sign and Submit
The form must be signed under penalty of perjury. Most settlements allow for both online submission and physical mailing. If mailing, it is highly recommended to use certified mail with a return receipt so you have proof that your claim was delivered.
Key Dates and Deadlines
Class action settlements are governed by strict timelines. Missing a deadline can result in a total loss of your right to claim a payment or object to the terms of the deal.
- Claim Filing Deadline: This is the last day your form can be postmarked or submitted online. Late claims are rarely accepted.
- Exclusion Deadline: If you wish to sue the company individually, you must “opt-out” by this date. If you do nothing, you stay in the class and give up your right to sue separately.
- Objection Deadline: If you disagree with the settlement amount or the attorney fees, you must file a formal objection by this date.
- Final Approval Hearing: This is when the court decides whether the settlement is fair and reasonable. Payouts are only distributed after the court grants final approval and all appeals are resolved.
What to Expect After Filing
Once you submit your claim, the settlement administrator will review it for accuracy. This process can take several months, as they must verify thousands of individual claims. You may receive a notice if your claim is deficient or requires more information.
If your claim is approved, you will not receive a check immediately. Distribution typically happens several months after the final approval hearing. The total amount you receive will be a pro-rata share of the net settlement fund, meaning it depends on how many other eligible investors file valid claims.
Why You Should Participate
Many investors ignore class action notices because they believe the payout will be too small to matter. However, for those who held significant positions, the recovery can be substantial. Furthermore, participating in these settlements holds corporations accountable for their transparency and financial reporting practices.
The filing process usually takes less than an hour if you have your records organized. It is a simple way to potentially recover some of the capital lost during a volatile period for the company.
Conclusion
The Velodyne Lidar settlement offers a path to recovery for investors who felt misled during the company’s transition to a public entity. By verifying your eligibility, gathering your records, and submitting your claim before the deadline, you ensure that your rights are protected. For more information on navigating financial recoveries or understanding your rights as a consumer, explore our other guides on legal settlements and investment protection.