Virgin Galactic $8.5M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

April 20, 2026 10:55 AM

Updated

April 20, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired publicly traded shares of Virgin Galactic Holdings Inc. (ticker: SPCE) or Social Capital Hedosophia Holdings Corp. (ticker: IPOA) common stock between July 10, 2019, and Aug. 4, 2022, inclusive.

Additional details

Both individuals and entities can be class members.
Each separate legal entity or separately managed account must submit a separate claim.
Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
Joint beneficial owners must each sign the claim form.
Plan administrators must submit claims for employee plan transactions.

How much can class members get?

The total settlement fund is $8,500,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired during the class period
The timing of each investor purchase, sale and holding
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.075 per damaged share for active claims and approximately $0.0012 per damaged share for dismissed claims before deductions for taxes, notice and administration costs and attorneys' fees and expenses.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation.

The settlement administrator will apply different formulas depending on when class members purchased their securities.

Active claims cover purchases between July 12, 2021, and Sept. 2, 2021, and will receive 88.2% of the net settlement fund.
Dismissed claims cover purchases between July 10, 2019, and July 11, 2021, and between Sept. 3, 2021, and Aug. 4, 2022, and will receive 11.8% of the net settlement fund.

For shares purchased during the class period and sold during the class period, the recognized loss is the lesser of the price inflation on the date of purchase minus the price inflation on the date of sale or the purchase price minus the sale price.
For shares purchased during the class period and held through the close of trading on Aug. 4, 2022, the recognized loss is the lesser of the price inflation on the date of purchase or the purchase price minus $6.76 (the closing price on the last corrective disclosure date).
For shares purchased between Aug. 10, 2021, and Aug. 19, 2021, the recognized loss is the greater of the standard recognized loss or $46,967,439 divided by the total number of shares eligible for an insider trading claim.

The settlement administrator will match multiple purchases and sales on a first-in, first-out basis.
The settlement administrator will set any recognized loss that calculates to a negative number to zero.
If total recognized losses exceed the fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Virgin Galactic securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. For claimants who file by mail, the settlement administrator will reduce their recognized loss by the greater of $5 or 1%. The claim deadline is Aug. 13, 2026.

Settlement administrator's mailing address: Virgin Galactic Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings and transaction information, including:

Shares held as of the opening of trading on July 10, 2019
Trade dates for purchases, acquisitions and sales between July 10, 2019, and Aug. 4, 2022
Number of shares purchased, acquired or sold
Total purchase, acquisition or sale price
Shares held as of the close of trading on Aug. 4, 2022

Class members must also provide documentation to support their transactions in Virgin Galactic securities. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker containing the transactional and holding information found in a confirmation slip

Payout options

Physical check

$8.5 million settlement fund

The $8,500,000 settlement fund includes:

Notice and administration costs: Approximately $985,000
Attorneys' fees: Up to $2,833,333
Attorneys' expenses: Up to $1,495,000
Service awards to plaintiffs: Up to $55,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: June 18, 2026
Fairness hearing: July 9, 2026
Deadline to file a claim: Aug. 13, 2026

When is the Virgin Galactic securities class action settlement payout date?

The settlement administrator will issue payments after it completes processing and the court resolves any appeals and grants final approval of the settlement.

Why did this class action happen?

The class action lawsuit alleged Virgin Galactic and certain officers made false and misleading statements about the company's commercial spaceflight program in violation of federal securities laws. The plaintiffs claimed these statements artificially inflated the price of Virgin Galactic securities and caused investor losses when the company issued corrective disclosures.

Virgin Galactic denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.