Velodyne Lidar (NASDAQ:VLDR) stock is rising higher on Monday after company founder David Hall sent an open letter to the Board of Directors.
Hall has been critical of leadership changes at Velodyne Lidar since the company went public via a special purpose acquisition company (SPAC) merger. He claims that chairman Michael Dee’s changes are behind an 80% drop in CLDR stock.
As a result of this, the founder, as well as the largest shareholder of the company’s outstanding common stock, is calling for his, and others’ departure. Let’s take a look at a portion of his open letter below.
“I am pleased that following my calls for meaningful leadership changes at Velodyne Lidar, Dr. Anand Gopalan decided to resign as Chief Executive Officer and a director. Though I believe this represents a first step in the right direction, the root of poor business management and the anti-stockholder culture at Velodyne Lidar remains. This is why today, I am calling on Chairman Michael Dee and director Hamid Zarringhalam to resign from the Board. I believe that both of these individuals have breached stockholders’ confidence and destroyed significant value in the Company.”
Investors appear to agree with Hall as shares of VLDR stock are seeing heavy trading today. As of this writing, more than 4.5 million shares of the stock have changed hands. That’s already above the company’s daily average trading volume of about 4 million shares.
VLDR stock was up 17.8% as of Monday afternoon but is down 66.9% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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