Virgin Galactic (NYSE: SPCE) ends shareholder suits with insurer cash
Rhea-AI Filing Summary
Virgin Galactic Holdings, Inc. announced that the U.S. District Court for the Eastern District of New York issued an order on August 14, 2026 granting final approval of a settlement resolving all claims in two consolidated shareholder derivative actions. Under the settlement, the Company’s insurers will pay $2.75 million to Virgin Galactic; the Company will retain half of this amount and the remainder will be paid to plaintiffs’ counsel for attorneys’ fees and costs. All claims in these actions, and all other claims related to the allegations in these actions, have been fully released, and there was no finding of wrongdoing by the Company or any of its directors or officers.
Positive
- Shareholder derivative litigation fully resolved with all related claims released and no finding of wrongdoing.
- Company to receive a $2.75 million insurer-funded settlement payment, retaining half as cash benefit.
Negative
- None.
Insights
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8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Settlement payment: $2.75 million
Company share of settlement: Half of $2.75 million
Court approval date: August 14, 2026
+2 more
5 metrics
Settlement payment
$2.75 million
Amount to be paid by the Company’s insurers to Virgin Galactic under the derivative settlement
Company share of settlement
Half of $2.75 million
Portion of the insurer-funded settlement Virgin Galactic will retain; the rest goes to plaintiffs’ counsel
Court approval date
August 14, 2026
Date the U.S. District Court for the Eastern District of New York granted final approval of the settlement
Case No. 1:22-cv-00933
1:22-cv-00933
Case number for In re Virgin Galactic Holdings, Inc. Derivative Litigation in the Eastern District of New York
Case No. 1:22-cv-7551
1:22-cv-7551
Case number for St. Jean v. Branson et al. in the Eastern District of New York
Key Terms
shareholder derivative actions, final approval of the settlement, attorneys’ fees and costs, claims ... fully released
4 terms
final approval of the settlement regulatory
"issued an order granting final approval of the settlement resolving all claims"
attorneys’ fees and costs regulatory
"remaining half paid to plaintiffs’ counsel for attorneys’ fees and costs"
claims ... fully released regulatory
"all claims in these actions, and all other claims ... have been fully released"
FAQ
What litigation did Virgin Galactic (SPCE) announce a settlement for?
Virgin Galactic announced final court approval of a settlement resolving all claims in two shareholder derivative actions, In re Virgin Galactic Holdings, Inc. Derivative Litigation and St. Jean v. Branson et al., both filed in the Eastern District of New York.
How much will Virgin Galactic (SPCE) receive under the derivative lawsuit settlement?
The Company’s insurers will pay $2.75 million to Virgin Galactic. The Company will retain half of this amount, while the other half will be paid to plaintiffs’ counsel as attorneys’ fees and costs, per the court-approved settlement terms.
Was any wrongdoing found in the Virgin Galactic (SPCE) derivative cases?
No. In connection with the settlement, there was no finding of wrongdoing by Virgin Galactic or any of its directors or officers. The settlement instead resolves the claims with a monetary payment funded by insurers and releases all related claims.
When did the court grant final approval of Virgin Galactic’s (SPCE) settlement?
The U.S. District Court for the Eastern District of New York granted final approval of the settlement on August 14, 2026. Virgin Galactic publicly announced this outcome in a press release dated August 18, 2026.
Who is funding the Virgin Galactic (SPCE) derivative settlement payment?
The settlement payment is being funded by Virgin Galactic’s insurers, who will pay $2.75 million to the Company. Virgin Galactic will keep half of the payment, with the remaining half allocated to plaintiffs’ counsel for legal fees and costs.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
____________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 18, 2026
____________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
____________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(949 ) 774-7640
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions :
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 | Other Events. | ||||
On August 18, 2026, Virgin Galactic Holdings, Inc. issued a press release announcing that the U.S. District Court for the Eastern District of New York issued an order on August 14, 2026 granting final approval of the settlement of the consolidated derivative lawsuit captioned In re Virgin Galactic Holdings, Inc. Derivative Litigation, Case No. 1:22-cv-00933 (E.D.N.Y.) and the derivative lawsuit captioned St. Jean v. Branson et al., Case No. 1:22-cv-7551 (E.D.N.Y.). A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by this reference.
Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
Exhibit No. | Description | ||||
| 99.1 | Press Release, dated August 18, 2026 | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
VIRGIN GALACTIC HOLDINGS, INC. | ||||||||||||||
| Date: August 18, 2026 | By: | /s/ Sarah Kim | ||||||||||||
| Name: | Sarah Kim | |||||||||||||
| Title: | Executive Vice President, Chief Legal Officer and Corporate Secretary | |||||||||||||
Exhibit 99.1 Virgin Galactic Receives Final Approval by the Court to Settle Derivative Claims With No Findings of Wrongdoing • Court Grants Final Approval of Settlement of Derivative Lawsuits • Matter Fully Resolved, with All Related Claims Released and No Finding of Wrongdoing • Company to Receive $2.75 Million in Settlement Payment, of which Company will Keep Half August 18, 2026 ORANGE COUNTY, Calif.--(BUSINESS WIRE)-- Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("Virgin Galactic" or the "Company") today announced that on August 14, 2026, the U.S. District Court for the Eastern District of New York (the "District Court") issued an order granting final approval of the settlement resolving all claims pending in the shareholder derivative actions captioned In re Virgin Galactic Holdings, Inc. Derivative Litigation, Case No. 1:22-cv-00933 (E.D.N.Y.) and St. Jean v. Branson et al., Case No. 1:22- cv-7551 (E.D.N.Y.). As part of the settlement, the Company’s insurers will pay $2.75 million to Virgin Galactic, half of which the Company will retain, with the remaining half paid to plaintiffs’ counsel for attorneys’ fees and costs. In accordance with the District Court’s order, all claims in these actions, and all other claims related to or based upon the allegations in these actions, have been fully released. In connection with the settlement, there was no finding of wrongdoing by the Company or any of its directors or officers. About Virgin Galactic Virgin Galactic is an aerospace and space travel company that enables safe, repeatable commercial human spaceflight and high-altitude scientific discovery. With its advanced air-launch vehicles and industry-leading cost structure, the company is preparing to take humans to space at an unprecedented rate, creating transformative personal experiences and supporting advanced suborbital study and strategic government initiatives. Discover how Virgin Galactic is driving innovation and scaling its business at https://www.virgingalactic.com/. For investor inquiries: Eric Cerny - Vice President, Investor Relations vg-ir@virgingalactic.com 949.774.7637
For media inquiries: Aleanna Crane - Vice President, Communications news@virgingalactic.com 575.800.4422