お知らせ • Oct 27
Hagens Berman Sobol Shapiro LLP Announces Proposed Settlement of Class Action Involving Purchasers of Luna Innovations, Inc. Securities
Luna Innovations Inc. proposed settlement in the Stipulation and Agreement of Settlement, dated May 5, 2025, of the Action for $7,300,000 in cash (the "Settlement Amount") should be approved as fair, reasonable, and adequate to the Class Members; whether the proposed Plan of Allocation of the Settlement Amount is fair, reasonable, and adequate; whether the application by Lead Counsel and Class Counsel, Hagens Berman Sobol Shapiro LLP, for attorneys' fees and expenses and for an award to the Court-appointed Lead plaintiff and Class Representative George Lang ("Class Representative") should be approved; and whether the proposed Judgment should be entered. The Action has been preliminarily certified as a class action for settlement purposes on behalf of all investors (individuals and entities) who purchased or acquired Luna securities from May 16, 2022 through April 19, 2024, inclusive, and who were damaged thereby ("Class Members"). The Action asserting claims against Luna and certain individual defendants under the Securities Exchange Act of 1934 ("Exchange Act"). A detailed description of the Action, including the parties, the claims and defenses, and other important information about your rights and options are in the detailed Notice of Pendency and Proposed Settlement of Class Action (the "Notice"). Class Representative alleged that during the period between May 16, 2022, and April 19, 2024, made materially false and misleading statements in violation of SS10(b) of Exchange Act, Rule 10b-5 promulgated thereunder, and SS20(a) of the Exchange Act, which caused the price of Luna securities to trade at artificially inflated prices. Specifically, Class Representative alleged that yields investors by failing to disclose that Luna's financial statements from May 16, 2022 to November 14, 2023 improperly recognized unearned revenue, would require restatement, and were supported by ineffective disclosure controls and procedures. Class Representative alleged that persons who purchased Luna securities during the Class Period suffered economic losses when the price of Luna securities declined as a result of a series of corrective disclosures between March 12, 2024, and April 25, 2024. During the course of the Litigation, the parties engaged a third-party mediator, Jed D. Melnick, Esq., of JAMS. After the submission of comprehensive mediation statements and other materials, the parties participated in a mediator's recommendation that the Action be settled for $7,300, which the Parties conditionally accepted. The Parties thereafter negotiated and executed a confidential term sheet to settle the Action, which memorialized the key terms of the Stipulation. At the Fairness Hearing, Class Counsel will request that the Court award aggregate attorneys' fees according to the terms of the retainer agreement between the Class Representative and Class Counsel. These attorney's fees are estimated to be no more than 30% of the Settlement Amount, or $2,190,000. Class members are not personally reliable for any such fees or any other fees or any other fees.