Drone startup company Lily entangled in a bankruptcy mess, is reported sending an email to its preorder customers that they will be able to get a refund. However, bankrupt Lily did not provide any time frame for the refund.
The company has filed for chapter 11 bankruptcy at the end of February after a lawsuit was brought on by the San Francisco District Attorney for misleading business practices. This was evident when Lily, having launched in 2015 with a strong promotional video that had footage allegedly claim to be shot from the Lily but wasn’t. It was later revealed that this video was shot with a GoPro camera and Lily prototype.
The video was enough to encourage $61,000 pre-orders between 2015 and 2016. At a deposit between $499 and $899, an estimated $34.8 million in pre-sales were provided for which the company advised to Recode that the funds were being stored. That was before the delays.
Part of the delay in the production included software issues, modification to camera hardware as well as more time for testing of the actual product. The research and development process, unfortunately, ate too much into the budget. The end result is that there was no money left over for a production run.
The refund process will require for the customers to fill out a form although what is missing is when the time frame will occur. For those who are looking to complete the refund, a form will be needed to be filled out.
As Prime Clerk, the company handling the refund process advised they will need Bankruptcy Court to approve the refund process to make the necessary payments. It is also advised that if they are unable to make the payments through the credit cards, they will have other to consider other solutions to make the refunds. What those solutions are not provided.