LegalMay 28, 2026, 05:17 PM
Virgin Galactic Gets Preliminary Approval for Derivative Settlement
AI Summary
Virgin Galactic Holdings, Inc. announced that the U.S. District Court for the Eastern District of New York granted preliminary approval for the settlement of consolidated stockholder derivative actions. The proposed settlement, executed on April 23, 2026, includes a $2.75 million payment from the Company's insurers to Virgin Galactic, with the Company retaining half of this amount. Additionally, Virgin Galactic will adopt and maintain specific corporate governance reforms for three years. A final settlement hearing is set for July 28, 2026, after which all related claims are expected to be dismissed.
Key Highlights
- U.S. District Court granted preliminary approval for the settlement of consolidated derivative lawsuits.
- Proposed settlement includes a $2.75 million monetary payment from the Company's insurers to Virgin Galactic.
- Virgin Galactic will retain half of the monetary payment, totaling $1.375 million.
- The Company agreed to adopt and maintain certain corporate governance reforms and procedures for three years.
- A final settlement hearing is scheduled for July 28, 2026.
- Plaintiffs' Counsel will receive $1.375 million for attorneys' fees and expenses.
- Service awards of up to $2,500 each will be paid to the five plaintiffs from the fee amount.
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