Shares of Velodyne Lidar (VLDR) were trading lower on Monday after the company announced that it has removed its founder and chairman, and its marketing chief, following an internal investigation. The two executives are married.
As of 2 p.m. EST, Velodyne's shares were down about 10.9% from Friday's closing price.
In a terse, early-morning announcement, Velodyne said that David Hall, Velodyne's founder, has been removed from his role as chairman of the board. Marketing Chief Marta Thoma Hall, who is married to David Hall, has also been removed from her role.
Both moves are effective immediately.
Velodyne said that the moves follow an investigation initiated by the board of directors' audit committee in December, which found that the Halls "failed to operate with respect, honesty, integrity, and candor" in their dealings with officers and directors of the company.
The Halls will both remain on the board of directors while receiving "appropriate remedial training," Velodyne said.
What exactly happened? Velodyne isn't saying. But it certainly doesn't sound good, and that's why the company's stock is down today.
Current Director Joseph Culkin, PhD, is taking over as chairman of the board. The company's chief communications officer, Sally Frykman, will also serve as marketing chief.
Auto investors hoping to learn more might not have to wait long: Velodyne will report its fourth-quarter and full-year 2020 earnings results after the U.S. markets close on Thursday, Feb. 25.