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LUNA.US

id: 1175

Luna Innovations (LUNA) Investor Settlement

Late claims are being considered for compensation, subject to approval.

$7,300,000

Cash Settlement

C.D. California

Court

2:24-cv-02630

Case number

05/16/2022

Class period Start

04/19/2024

Class period End

01/16/2026

Claim deadline

Luna Innovations ($LUNA) has reached a settlement with investors over claims that it misled them about its financial results and internal controls.

Outline

Between May 2022 and April 2024, Luna Innovations reported strong financial results, attributing growth to successful acquisitions and product performance. However, the company later admitted it had improperly recognized revenue, misrepresented the effectiveness of its internal controls, and withheld critical financial restatements. Following these disclosures, $LUNA fell by over 80%, and Luna Innovations faced a lawsuit from investors.

Timeline

March 14, 2023 – Luna reported full-year 2022 results and emphasized strong internal controls.
March 12, 2024 – Luna announced restatements due to improper revenue recognition. $LUNA fell 36%.
March 25, 2024 – CEO Scott Graeff abruptly retired. $LUNA dropped another 12%.
April 19, 2024 – Luna expanded restatements to include five more quarters, revealing material control failures across 2022 and early 2023.
April 25, 2024 – $LUNA fell 80% in total.
October 11, 2024 – Investors filed a suit alleging widespread accounting fraud and ongoing reporting failures.
April 2025 – Luna agreed to settle with investors.

Background

Luna Innovations, a fiber optics technology firm, reported consistent revenue growth between 2022 and 2023. The company credited its results to acquisitions, such as LIOS and OptaSense, and highlighted its internal controls as "effective" in SEC filings.

But in March 2024, Luna disclosed it had improperly recognized revenue in Q2 and Q3 2023. The company later admitted that financial statements from as far back as Q1 2022 through Q1 2023 were unreliable due to material accounting errors. 

By April, Luna’s board acknowledged widespread internal control failures, and several executives, including the CEO, CFO, CTO, and other senior personnel, either resigned or were terminated for cause.

Luna missed multiple SEC filing deadlines, its stock has plummeted more than 80% from its peak, erasing nearly $290 million in shareholder value.

On October 11, 2024, investors filed a lawsuit, alleging Luna misled them about its financial reporting and internal controls.

What Can Investors Expect Now?

Luna Innovations ($LUNA) has reached a settlement with investors over claims that it misled them about its financial results and internal controls.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

US Securities Class Action

Case Status

Accepting Late Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.54

Filing date

04/01/2024

Lead Plaintiff Deadline

05/31/2024

Plaintiffs

Eyad Karzoun

Attorneys

The Rosen Law Firm, P.A. (Los Angeles, CA)

Defendants

Luna Innovations Incorporated, Scott A. Graeff, Eugene J. Nestro, George Gomez-Quintero

Administrator

EPIQ

Settlement agreement date

2025-05-05

Court hearing date

02/17/2026

Objection deadline

01/27/2026

Attorney fee

$2,640,000

Trades matching type

FIFO

Frequently Asked Questions

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