Virgin Galactic settles lawsuits, receives $2.75M from insurers

By Philip Seaworth • Tuesday, August 18 10:50 • Permanent Link

Virgin Galactic said a federal court gave final approval on Aug. 14, 2026, to settle two shareholder derivative lawsuits, ending the matter with all related claims released and no finding of wrongdoing against the company or its directors and officers.

The settlement brings $2.75 million from the company’s insurers to Virgin Galactic. The company will keep half of that amount, or $1.375 million, while the other half will go to plaintiffs’ counsel for attorneys’ fees and costs.

The lawsuits, titled In re Virgin Galactic Holdings, Inc. Derivative Litigation and St. Jean v. Branson et al., had been pending in the U.S. District Court for the Eastern District of New York. With the court’s order, Virgin Galactic said all claims in those actions and other claims tied to the allegations have been fully resolved. As a result of these announcements, the company's shares have moved -1.02% on the market, and are now trading at a price of $3.0982. For the full picture, make sure to review Virgin Galactic's 8-K report.

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