Lidar-maker Luminar files for bankruptcy

Lidar company Luminar has filed for Chapter 11 bankruptcy protection following a challenging year marked by executive departures, significant layoffs, and legal disputes. The company plans to sell its lidar business during the bankruptcy process and has already arranged to sell its semiconductor subsidiary. Despite continuing operations to minimize disruption for suppliers and customers, Luminar will ultimately cease to exist once the bankruptcy proceedings conclude. CEO Paul Ricci emphasized that a court-supervised sale is the best path forward after a thorough review of alternatives. Luminar’s troubles intensified after founder Austin Russell resigned as CEO amid an ethics inquiry but remained on the board and later launched a new venture, Russell AI Labs, while attempting to buy Luminar. The company faced a 25% workforce reduction, the departure of its CFO, loan defaults, an SEC investigation, and eviction lawsuits. A major setback occurred when Volvo, Luminar’s largest customer and early investor, canceled a five-year contract, prompting Luminar to take legal action. The company also faces legal claims