Velodyne Lidar Responds to David Hall’s Latest False Statements

Rhea-AI Summary

Velodyne Lidar (NASDAQ: VLDR, VLDRW) has issued a response to David Hall's August 23, 2021 letter, asserting it as part of a deceptive campaign to distract from his ongoing arbitration over the theft of confidential information. The company emphasizes its commitment to long-term growth, production, and innovation, maintaining a strong partnership with Nikon. The Board remains focused on shareholder interests, countering Hall's false claims, including those regarding Michael Dee and Hamid Zarringhalam. A procedural hearing against Hall is scheduled for September 2, 2021.

Positive

• Continued focus on long-term growth and shareholder value.
• Maintaining production records and innovative product development.
• Strong partnership with Nikon, a strategic investor since 2018.
• Independent directors aligned with shareholder interests.

Negative

• Ongoing arbitration with David Hall regarding theft of confidential information.
• Allegations against Hall may create distractions for the company's operations.

Company Views Mr. Hall’s Latest Actions as Attempt to Divert Attention from the Serious and Ongoing Arbitration Regarding his Theft of Confidential Intellectual Property

SAN JOSE, Calif.--(BUSINESS WIRE)-- Velodyne Lidar, Inc. (NASDAQ: VLDR, VLDRW) today responded to the latest false statements contained in David Hall’s August 23, 2021 open letter to the Company’s Board of Directors (the “Board”). The Company believes that this latest missive from David Hall is part of an ongoing, self-serving and deceptive campaign in which he has used false statements to disparage the Company's Board and distract attention from his own repeated pattern of misconduct. This misconduct dates back to Mr. Hall’s failure to operate with respect, honesty, integrity, and candor in his dealings with Company officers and directors, resulting in his censure and removal as Chairman of the Board.

The Velodyne Board and management team are continuing to execute on a strategy designed to drive long-term growth for the Company and value for stockholders. Under the Board’s oversight, Velodyne Lidar remains focused on meeting the requirements of its customers, setting production records and delivering significant progress on its growth plans. The Company continues to innovate on its cutting-edge, award-winning products to advance its strong pipeline and meet demand for its revolutionary hardware and software solutions.

David Hall is Attempting to Divert Attention from the Ongoing Arbitration Regarding his Theft of Confidential Intellectual Property

The Company believes that Mr. Hall’s actions are an attempt to distract from the serious and ongoing arbitration against Mr. Hall regarding his theft of Velodyne’s confidential, trade secret information. Mr. Hall has never denied taking this confidential, trade secret information, which he seems intent upon using to further his personal business ventures to the detriment of Velodyne and its stockholders.

Like any enterprise with a focus on innovative, breakthrough technologies, Velodyne is committed to protecting its intellectual property. The Company will take any and all actions to ensure Mr. Hall complies with his legal obligations to refrain from any use or disclosure of Velodyne’s property and to immediately return it to Velodyne. The Company views Mr. Hall’s latest missive as an attempt to divert attention from Velodyne’s upcoming proceeding against him, where an initial procedural hearing is set for September 2, 2021.

David Hall Falsely Portrays the Trusted Long-standing Relationship Between Velodyne Lidar and Nikon

The Company’s relationship with Nikon dates back to 2018, when Mr. Hall served as Chief Executive Officer of Velodyne. As part of its long-standing relationship with Velodyne, Nikon has also been a strategic investor in the Company. Today, the Company continues to have a strong partnership with Nikon as a trusted technology and manufacturing partner for Velodyne’s industry-leading lidar sensor.

Michael Dee and Hamid Zarringhalam are Aligned with Velodyne Lidar Stockholders

Michael Dee and Hamid Zarringhalam are independent directors focused on the long-term success of the Company, who have exceptional track records of success as business leaders and have served as outstanding stewards of Velodyne and its stockholders.

Mr. Hall’s fabricated statements about Mr. Zarringhalam are demonstrably false and libelous. Mr. Zarringhalam never made the comments Mr. Hall claimed, and is in fact a stockholder of the Company, having purchased stock using his own personal funds¹. Mr. Zarringhalam remains a stockholder today and his interests are aligned with those of all stockholders.

Mr. Hall’s repeated and demonstrably false statements have shown that he is willing to go to unacceptable lengths to advance his own self-serving agenda. The Company’s Board and management team remain steadfast in their commitment to driving enhanced value creation and will continue to do what they believe is in the best interest of the Company and ALL Velodyne Lidar stockholders.

About Velodyne Lidar

Velodyne Lidar (Nasdaq: VLDR, VLDRW) ushered in a new era of autonomous technology with the invention of real-time surround view lidar sensors. Velodyne, the global leader in lidar, is known for its broad portfolio of breakthrough lidar technologies. Velodyne’s revolutionary sensor and software solutions provide flexibility, quality and performance to meet the needs of a wide range of industries, including autonomous vehicles, advanced driver assistance systems (ADAS), robotics, unmanned aerial vehicles (UAV), smart cities and security. Through continuous innovation, Velodyne strives to transform lives and communities by advancing safer mobility for all. For more information, visit www.velodynelidar.com.

Forward Looking Statements

This press release contains "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 including, without limitation, all statements other than historical fact and include, without limitation, statements regarding market growth, target markets, new products and development efforts. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," “can,” "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Velodyne's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the uncertain impact of the COVID-19 pandemic on Velodyne's and its customers' businesses; Velodyne's ability to manage growth; Velodyne's ability to execute its business plan; uncertainties related to the ability of Velodyne's customers to commercialize their products and the ultimate market acceptance of these products; uncertainties regarding government regulation and adoption of lidar; the rate and degree of market acceptance of Velodyne's products; the success of other competing lidar and sensor-related products and services that exist or may become available; uncertainties related to Velodyne's current litigation and potential litigation involving Velodyne or the validity or enforceability of Velodyne's intellectual property; and general economic and market conditions impacting demand for Velodyne's products and services. For more information about risks and uncertainties associated with Velodyne’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Velodyne’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to Velodyne as of the date hereof, Velodyne undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

¹ https://ir.velodynelidar.com/static-files/1c3c58e4-191c-48b8-b4e4-b1419c4d903f

View source version on businesswire.com: https://www.businesswire.com/news/home/20210824005357/en/

Investor Relations

InvestorRelations@velodyne.com

Media

Jim Golden / Jack Kelleher

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

Source: Velodyne Lidar, Inc.

FAQ

What are the latest developments in Velodyne Lidar's arbitration with David Hall?

Velodyne is currently engaged in ongoing arbitration against David Hall regarding the theft of confidential intellectual property.

When is the procedural hearing against David Hall scheduled?

The initial procedural hearing is scheduled for September 2, 2021.

What is Velodyne Lidar's relationship with Nikon?

Velodyne has a strong partnership with Nikon, which has been a strategic investor in the company since 2018.

How is Velodyne Lidar responding to David Hall's allegations?

Velodyne is countering Hall's allegations as false and part of a self-serving agenda, focusing on maintaining its growth strategy.

What is the impact of David Hall's actions on Velodyne Lidar's stockholders?

David Hall's actions are viewed as a distraction from the company's strategy and may influence stockholder confidence.