Court: E.D. New York

Case: 1:21-cv-03070

Virgin Galactic SPCE has finally agreed to settle a lawsuit from investors who say the company hid serious safety issues tied to its spaceflight program—specifically around the much-hyped Unity 22 mission. The settlement, announced in June 2025, comes after years of drama—including FAA investigations, flight delays, and a tanking stock price.

What Really Happened on Unity 22

Unity 22, the July 2021 flight that took Richard Branson to the edge of space, was celebrated as a major milestone. But behind the scenes, something went wrong. The spacecraft drifted off course—a serious safety issue that wasn’t disclosed until weeks later.

The FAA eventually stepped in and grounded all flights that September. As a result, future launch plans were delayed, with commercial flights pushed to late 2022.

Investors Push Back—and Get Results

Once the news got out, investors started questioning whether Virgin had exaggerated how ready and safe its system really was before the launch. By May 2022, a group of shareholders filed a lawsuit, saying the company misled them and pumped up the stock price.

The Deal That Finally Closed the Chapter

Now, after three years, there’s a settlement on the table, offering some closure to affected shareholders. While the final terms are still being worked out, investors who lost money can already submit a claim. You can check the latest details and file yours here.