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SPCE.US

id: 804

Virgin Galactic ($SPCE) Investor Settlement

The court has approved the settlement.

$8,500,000

Cash Settlement

E.D. New York

Court

1:21-cv-03070

Case number

07/10/2019

Class period Start

10/12/2021

Class period End

Virgin Galactic has reached a settlement with $SPCE investors over claims it misled the public about its spaceflight tech and safety before key launches like Unity 22.

Outline

In 2021, Virgin Galactic was accused of overstating its flight readiness and downplaying safety issues related to its Unity spacecraft when the FAA grounded flights after Unity 22 deviated from its planned path. After delays and internal issues came to light, $SPCE fell sharply. Investors filed suit against the company.

Timeline
July 11, 2021 – Virgin Galactic’s Unity 22 flight launched with Richard Branson on board.
September 10, 2021 – FAA grounded all Virgin flights amid a probe into Unity 22’s flight path deviation.
October 14, 2021 – Virgin delayed commercial flights to Q4 2022.
May 6, 2022 – Investors filed suit, alleging misrepresentations about flight safety.
June 2025 – Virgin Galactic reached a settlement to resolve investor claims.
Background

Virgin Galactic, a space tourism company, promoted Unity 22 as a landmark mission with founder Richard Branson on board. Before launch, the company emphasized strong safety protocols and system readiness. However, after the July 2021 flight, it was revealed that Unity 22 veered outside its assigned airspace—a fact the company did not initially disclose.

In September 2021, the FAA halted further flights, citing an investigation into the incident. Later that year, Virgin delayed its commercial timeline. These events raised questions about the company's internal oversight, risk disclosures, and technological maturity. As trust eroded, $SPCE shares dropped significantly, prompting a lawsuit from investors.

What Can Investors Expect Now?

Virgin Galactic has reached a settlement with $SPCE investors over claims it misled the public about its spaceflight tech and safety before key launches like Unity 22.

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

Preliminary Approved Settlement

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Investment Bank,

Service Provider

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.075

Filing date

05/28/2021

Plaintiffs

Mark Kusnier, Robert Scheele, Xinqiang Cui, Justin Carlough, Jennifer Ortiz, Richard O-KeefeJones, Vipul Gupta, Maria Josephine Rosales, Hesham Ibrahim

Attorneys

Glancy Prongay & Murray LLP (Los Angeles, CA), The Rosen Law Firm, P.A. (New York, NY)

Defendants

Richard Branson, Chamath Palihapitiya, George Whitesides, Michael Colglazier

Judge

Hon. Allyne R. Ross

Administrator

A.B. Data Ltd

Attorney fee

$4,383,305

Trades matching type

FIFO

Frequently Asked Questions

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