Luminar Claims Founder Austin Russell Is Dodging a Subpoena in Bankruptcy Case
Luminar says its founder, Austin Russell, is avoiding a subpoena as the lidar company navigates Chapter 11 bankruptcy proceedings.
Lidar manufacturer Luminar says its founder and former chief executive, Austin Russell, has been avoiding requests for information, including a subpoena, that the company says it needs to determine whether legal action should be taken against him.
In an emergency court filing submitted over the weekend, Luminar said it has been attempting to recover company-owned devices from Russell since his resignation in May. While the company has recovered nine computers, it said it is still seeking Russell's company-issued phone and a digital copy of his personal phone.
Luminar entered Chapter 11 bankruptcy proceedings in late December. In the filing, the company's lawyers claimed that Russell and members of his personal staff repeatedly misled the company's legal representatives about his whereabouts during the holiday period. Luminar is now seeking the court's permission to serve Russell by mail or email instead. A lawyer representing Luminar declined to comment further.
Emails included in the court filing show Russell maintains he has been cooperative and has sought assurances that any personal data on his devices would remain protected.
"The company declined, so we will follow the court-established process for data handling protections instead," said Leonard Shulman, an attorney for Russell, in a statement to TechCrunch.
The filing marks one of the first significant developments in Luminar's rapidly unfolding bankruptcy case, which involves efforts to sell its two primary business units. The company is seeking court approval of an agreement it previously reached to sell its semiconductor subsidiary to Quantum Computing, Inc. It has set a January 9 deadline for bids on its lidar division.
Russell, through his new venture Russell AI Labs, attempted to acquire Luminar before the bankruptcy filing and has indicated plans to submit a bid during the bankruptcy process. "As it relates to Luminar, our focus remains on what matters: Russell AI Labs' bid to rebuild the company and bring value to its stakeholders," Shulman said.
According to Luminar's lawyers, the company began seeking information from Russell shortly after his abrupt resignation in May, following a code-of-business-conduct and ethics inquiry by the board's audit committee. Luminar said it was assessing whether it had potential legal claims related to the investigation and to personal loans allegedly taken by Russell, but stated that he was uncooperative.
On November 12, Luminar's board formed a Special Investigation Committee and hired law firm Weil, Gotshal & Manges to investigate "certain acts, omissions, transactions and potential claims" involving current and former directors and officers.
About a month later, just ahead of the bankruptcy filing, Weil contacted the law firm McDermott Will & Schulte, which had previously represented Russell, regarding the return of Luminar-issued laptops, desktop computers, Russell's company phone, and a digital image of his personal phone.
Weil's lawyers spent a week attempting to confirm whether McDermott would represent Russell in matters related to the investigation, learning on December 19 that it would not. They then contacted Russell directly. According to the filing, Russell responded for the first time on Christmas Eve. He later authorized McDermott to release the computers, which had been in the firm's possession since his resignation. However, Russell repeatedly requested guarantees that Luminar's lawyers would not access personal data on his phones.
"I have offered direct cooperation as well as prompt action, even through the holidays — but if this singular basic protection cannot be confirmed, I am advised further deliberations on this matter will not be productive," Russell wrote in an email on New Year's Eve, according to the filing.
Luminar arranged for a forensic examiner to visit Russell's Florida residence on New Year's Day. Still, the examiner was turned away by Russell's security team, an action Luminar's lawyers described as "unacceptable."
Russell countered that the technician arrived "unannounced" on a holiday morning while he was asleep and reiterated his concerns about protecting personal data. Luminar's lawyer stated that the company had "repeatedly confirmed" it would review only Luminar-related materials. Russell replied on January 2 that "any characterization that I have been uncooperative is wholly inaccurate," accusing Luminar's lawyers of "word gymnastics."
Luminar then attempted to subpoena the information, but claims its process servers were also turned away by Russell's security staff, who allegedly misrepresented whether Russell was present at the residence.
"Can we try to serve Austin again today? We're going to need someone dogged. He is going to evade service as long as possible," one Weil lawyer wrote in an email on New Year's Eve included in the filing. "In fact, he was home when your person tried last time and the guard simply lied for him."
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