Luminar Founder Austin Russell Accepts Subpoena in Bankruptcy Case
▼ Summary
– Austin Russell has agreed to accept an electronic subpoena for his phone data as part of Luminar’s bankruptcy, following accusations he avoided in-person service.
– He has seven days to legally challenge the subpoena or 14 days to comply, with an agreement in place on protecting his personal information.
– Luminar filed for Chapter 11 bankruptcy in December after losing key contracts and facing increased competition, particularly from Chinese lidar companies.
– The company has a deal to sell its lidar assets for $22 million and is holding an auction, while Russell remains interested in bidding through his new venture.
– Luminar is seeking information from Russell, who resigned amid an ethics inquiry, to decide on potential legal action, having already received computers but not his phone.
Austin Russell, the founder and former chief executive of Luminar, has consented to receive an electronic subpoena for data on his mobile device. This development is part of the ongoing bankruptcy proceedings for the lidar technology company, according to a legal filing submitted on Tuesday. The agreement stipulates that Russell now has one week to formally challenge the subpoena. If he does not, he must comply with its demands within a fourteen-day period.
This resolution follows accusations from Luminar’s legal team that Russell was evading service by having process servers turned away at the entrance to his Florida estate. Russell had previously expressed reluctance to surrender his phone without guarantees from the company regarding the protection of his private information. The new filing indicates that both parties have now agreed to establish a specific protocol for handling this sensitive data.
Luminar initiated Chapter 11 bankruptcy protection in December. The company faced significant financial strain after losing crucial contracts with automotive giants like Volvo and Mercedes-Benz. Intensifying competition from Chinese lidar firms also contributed to its financial difficulties.
In a move to address its obligations, Luminar recently arranged a deal with Quantum Computing Inc. (QCI) to sell its core lidar assets for $22 million. A separate transaction is also in the works to sell its semiconductor division to the same buyer for $110 million. The company has scheduled an auction for the end of this month, hoping to attract higher bids that could surpass QCI’s current offer.
Russell had attempted to purchase Luminar last October. This effort came several months after his sudden resignation as CEO, which was prompted by an internal ethics investigation, but preceded the company’s bankruptcy filing. Representatives for his new enterprise, Russell AI Labs, have indicated he remains a potential bidder for the lidar assets, though no formal offer has been presented yet.
Luminar’s pursuit of information from Russell is connected to its evaluation of potential legal action against him following his departure. The founder has already provided several computers to the company but retained his phone due to privacy concerns. There was initial confusion over the number of devices sought; Luminar originally stated it was requesting two phones, one company-issued and one personal. Russell has clarified in court documents that he only ever used a single phone during his tenure at the company.
(Source: TechCrunch)
