#USA #Class Action #Los Angeles #Hagens Berman #Luna Innovations

Proposed Settlement in Luna Innovations Class Action

On October 27, 2025, Hagens Berman Sobol Shapiro LLP announced a proposed settlement in a class action concerning the securities of Luna Innovations, Inc. This legal case, which has captured the attention of investors, centers on allegations of misleading statements made by Luna during a specified time period.

Overview of the Case

The United States District Court for the Central District of California has taken on this litigation, known officially as In re Luna Innovations Incorporated Securities Litigation. This lawsuit has been filed on behalf of individuals and entities that acquired Luna's securities between May 16, 2022, and April 19, 2024. The class action seeks to address the grievances of those affected by what the plaintiffs allege were materially false and misleading statements related to Luna's financial performance.

Allegations Against Luna Innovations

According to the claims made by the Class Representative, Luna's financial disclosures during the class period inflated the company's stock prices. The allegations point to a failure on the part of Luna to adequately disclose financial discrepancies, particularly the improper recognition of unearned revenue. Such omissions inflated investors' perceptions of the company's financial health, resulting in economic losses when the stock price later fell due to corrective disclosures made between March and April of 2024.

Details of the Proposed Settlement

A hearing is scheduled for February 17, 2026, where the court will evaluate the proposed settlement amounting to $7.3 million in cash. This settlement aims to compensate affected shareholders for their economic losses. Key components of the settlement include:

1. Award of Damages: Approval is sought to distribute the settlement amount amongst the class members who were affected.
2. Class Counsel Fees: Class Counsel, which represented the interests of the class, is requesting attorney’s fees estimated at 30% of the settlement total, equating to about $2.19 million. Additionally, the total anticipated expenses may not exceed $450,000.
3. Net Settlement Fund: After deducting legal fees and expenses, the net settlement for the class members is projected to be approximately $4.66 million.

The Plan for Claimants

Class members looking to claim funds from the Net Settlement Fund must submit a Proof of Claim and Release by either mail or electronically by January 16, 2026. It’s crucial for claimants to ensure their claims are submitted on time, as failing to do so risks exclusion from the settlement benefits.

Prospective claimants can find the details necessary for the claim through the dedicated settlement website at Luna Innovations Securities Litigation.

Exclusions and Objections

Members of the settlement class must be aware that they will be bound by the court’s judgement unless they file a written Request for Exclusion by January 27, 2026. Furthermore, any objections regarding the settlement terms or any claims made must also be submitted by this date, even for those who desire to file a claim.

Conclusion

The Luna Innovations case stands as a significant moment for investors affected by corporate misrepresentation. As the settlement's hearing date approaches, affected investors should remain vigilant and informed about their legal rights and options. This proposed resolution not only represents a potential recovery for investors but also stresses the importance of corporate transparency and accountability in financial reporting.

In summary, the Luna Innovations securities litigation underscores the ongoing challenges within the market for investors and emphasizes the critical role of litigation in seeking redress for alleged grievances. For continuous updates and information on how to proceed with claims, stakeholders are encouraged to stay connected through the designated channels provided in the notifications.