$8.5M Virgin Galactic Securities Class Action Lawsuit Settlement, Did You Lose Money on SPCE Stock? Deadline to File a Claim is August 13

Virgin Galactic Holdings Inc. and certain officers agreed to pay $8.5 million to settle a securities class action lawsuit alleging they made materially false and misleading statements about the company’s commercial spaceflight program. If you bought Virgin Galactic (SPCE) or Social Capital Hedosophia (IPOA) stock between July 10, 2019, and August 4, 2022, you may be eligible for a cash payment. The deadline to file a claim is August 13, 2026.

Quick Facts

Field	Detail
Settlement Amount	$8,500,000
Claim Deadline	August 13, 2026
Who Qualifies	Investors who bought SPCE or IPOA stock between July 10, 2019 and August 4, 2022
Payout Per Person	~$0.075/share (active claims); ~$0.0012/share (dismissed claims) — before deductions
Proof Required	Yes — broker statements or trade confirmations
Settlement Status	Preliminarily approved; Final Hearing July 9, 2026
Administrator	Strategic Claims Services
Official Website	VirginGalacticSecuritiesSettlement.com

Current Status & What Happens Next

• The settlement is open for claims now. The court has scheduled a final approval (fairness) hearing for July 9, 2026.
• The deadlines to opt out or object are earlier than the claim deadline — you must exclude yourself or submit an objection by June 18, 2026.
• Payments will go out only after the court grants final approval and resolves any appeals. No specific payment date has been confirmed.

What Is the Virgin Galactic Securities Lawsuit About?

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.

The case — Lavin v. Virgin Galactic Holdings Inc., Case No. 1:21-cv-03070-ARR-TAM — covers two separate stock tickers. Investors who purchased shares of Virgin Galactic Holdings (ticker: SPCE) and Social Capital Hedosophia Holdings Corp. (ticker: IPOA), the SPAC that merged with Virgin Galactic, are both included in the settlement class.

Virgin Galactic denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation. The settlement does not mean the court found Virgin Galactic violated any law.

Who Is Eligible to File a Claim?

• You may qualify if you purchased or otherwise acquired publicly traded shares of Virgin Galactic Holdings (SPCE) common stock between July 10, 2019, and August 4, 2022, inclusive
• You may qualify if you purchased or otherwise acquired Social Capital Hedosophia Holdings Corp. (IPOA) common stock during the same period
• You may qualify if you are a U.S.-based individual or entity that held or traded these shares in a brokerage account
• You may qualify if you are an authorized representative, executor, administrator, guardian, or trustee acting on behalf of a qualifying beneficial owner
• You may qualify if you are a plan administrator managing employee plan transactions involving these securities during the class period

Each separate legal entity or separately managed account must submit a separate claim. Joint beneficial owners must each sign the claim form.

Note: Minimum payout threshold applies. Class members whose payment calculates to less than $10 will not receive a payout.

Related article: Endue Software Data Breach Settlement, Are You Eligible for Up to $2,500? Deadline to File a Claim is June 30

How Much Can You Receive?

Your payout depends on when you bought your shares and how many you held. The settlement splits claims into two categories:

Active Claims — Shares purchased between July 12, 2021 and September 2, 2021 Active claims receive 88.2% of the net settlement fund, with an estimated average recovery of $0.075 per damaged share before deductions.

Dismissed Claims — Shares purchased between July 10, 2019 – July 11, 2021 or September 3, 2021 – August 4, 2022 Dismissed claims receive 11.8% of the net settlement fund, with an estimated average recovery of $0.0012 per damaged share before deductions.

What reduces your actual payment? The $8.5 million fund covers all costs before investors receive anything. The fund includes approximately $985,000 in notice and administration costs, up to $2,833,333 in attorneys’ fees, up to $1,495,000 in attorneys’ expenses, and up to $55,000 in service awards to plaintiffs. Investors receive what remains after these deductions, distributed pro rata based on each claimant’s recognized loss.

Actual payments may be higher or lower depending on individual claims and the total number of valid claims submitted. The more investors who file, the smaller each individual payment becomes.

How to File a Claim

Step 1 — Visit the official settlement website at virgingalacticsecuritiessettlement.com/file-a-claim-online

Step 2 — Enter your personal details, including the last four digits of your Social Security number or taxpayer identification number

Step 3 — Enter your holdings and transaction data — shares held as of July 10, 2019 (market open), all trade dates, number of shares, purchase and sale prices, and shares held as of August 4, 2022 (market close)

Step 4 — Upload supporting documentation (broker confirmation slips, account statements, or authorized broker statements)

Step 5 — Submit your claim form online

Step 6 — Save your confirmation number for your records

Estimated time to complete: 10–15 minutes

Prefer to file by mail? Download the paper claim form from the settlement website and send it to:

Virgin Galactic Securities Litigation c/o Strategic Claims Services P.O. Box 230, 600 N. Jackson St., Suite 205 Media, PA 19063 Phone: 866-274-4004 Email: [email protected]

Important: Claimants who file by mail will have their recognized loss reduced by the greater of $5 or 1%. Filing online avoids this reduction.

Important Deadlines & Dates

Milestone	Date
Class Period Start	July 10, 2019
Class Period End	August 4, 2022
Lawsuit Filed	2021
Stipulation of Settlement Signed	November 3, 2025
Claims Period Opens	April 2026
Objection Deadline	June 9, 2026
Opt-Out Deadline	June 18, 2026
Final Approval (Fairness) Hearing	July 9, 2026
Claim Filing Deadline	August 13, 2026
Expected Payment Date	TBD (after July 9, 2026 + appeals period)

Frequently Asked Questions

Do I need a lawyer to file a claim? 

No. You do not need a lawyer to file a claim. The online claim form at VirginGalacticSecuritiesSettlement.com takes about 10–15 minutes to complete and is free to submit. Attorneys’ fees come out of the settlement fund, not from your individual payment.

Is this settlement legitimate?

 Yes. This is a federal securities class action — Lavin v. Virgin Galactic Holdings Inc., Case No. 1:21-cv-03070-ARR-TAM — filed in the U.S. District Court for the Eastern District of New York. The official settlement administrator is Strategic Claims Services, a court-appointed firm. The settlement website is supervised by lead counsel and the court.

When will I receive my payment? 

The court holds its final approval hearing on July 9, 2026. After approval, the administrator must process all claims before issuing checks. Expect payments several months after final approval, assuming no appeals delay the process.

What if I missed the claim deadline? 

The claim deadline is August 13, 2026. If you miss it, you will not receive a payment. You will still be bound by the settlement release and cannot separately sue Virgin Galactic for the same claims, so filing before the deadline is important.

Will this settlement payment affect my taxes? 

Securities lawsuit settlement payments that compensate for investment losses may be treated differently from other types of settlements for tax purposes. Treatment depends on your individual situation, including how you originally reported your losses. Consult a tax professional for advice specific to your circumstances.

What is the difference between Active Claims and Dismissed Claims? 

Active claims cover shares purchased between July 12, 2021 and September 2, 2021 — the period the court found most directly tied to alleged misstatements. These claims receive 88.2% of the net fund and a higher estimated per-share recovery. Dismissed claims cover all other dates in the class period and share 11.8% of the net fund, resulting in a much lower estimated per-share amount.

What documents do I need to file? 

You need broker confirmation slips, brokerage account statements, or authorized broker statements showing all your trades in SPCE or IPOA stock during the class period. You also need your holdings as of the opening of July 10, 2019, and the close of August 4, 2022.

Can I opt out of the settlement and sue Virgin Galactic on my own? 

Yes, but you must do so by June 18, 2026. Opting out means you get no settlement payment but retain the right to bring your own lawsuit. Given the complexity and cost of individual securities litigation, this option makes practical sense only in limited circumstances — consult an attorney before deciding.

Sources & References

• Official Settlement Website: VirginGalacticSecuritiesSettlement.com
• Official Notice & Claim Form (PDF): Court-Approved Long Notice
• Court Docket: Lavin v. Virgin Galactic Holdings Inc., Case No. 1:21-cv-03070-ARR-TAM, U.S. District Court, Eastern District of New York

Last Updated: April 20, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.