Hagens Berman Sobol Shapiro LLP Announces Proposed Settlement of Class Action Involving Purchasers of Luna Innovations, Inc. Securities

LOS ANGELES, Oct. 27, 2025 /PRNewswire/ --

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION

IF YOU PURCHASED OR ACQUIRED LUNA INNOVATIONS, INC. ("LUNA") SECURITIES FROM MAY 16, 2022 THROUGH APRIL 19, 2024, INCLUSIVE, YOUR RIGHTS MAY BE AFFECTED BY A PROPOSED SETTLEMENT IN A LAWSUIT PENDING IN FEDERAL COURT (THE "ACTION").¹ PLEASE READ CAREFULLY.

YOU ARE HEREBY NOTIFIED that a hearing will be held on February 17, 2026 at 10:00 a.m., before the Honorable Consuelo Marshall, United States District Judge, at the United States District Court for the Central District of California (the "Court"), First Street U.S. Courthouse, 350 W. 1st Street, Suite 4311, Los Angeles, CA 90012 for the purpose of determining: (1) whether the 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; (2) whether the proposed Plan of Allocation of the Settlement Amount is fair, reasonable, and adequate; (3) whether the application by Lead Counsel and Class Counsel, Hagens Berman Sobol Shapiro LLP ("Class Counsel"), 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 (4) 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 asserts 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, the Defendants made materially false and misleading statements in violation of §10(b) of Exchange Act, Rule 10b-5 promulgated thereunder, and §20(a) of the Exchange Act, which caused the price of Luna securities to trade at artificially inflated prices. Specifically, Class Representative alleged that Defendants misled 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 mediation via videoconference with Mr. Melnick on April 14, 2025. After negotiation throughout the mediation process, the Mediator issued a mediator's recommendation that the Action be settled for $7,300,000, 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 liable for any such fees or any other expenses (estimated not to exceed $150,000 for litigation expenses, and $300,000 for Notice and Administration Expenses). The net recovery for Class Members (also referred to as the Net Settlement Fund) is estimated to be at least $4,660,000 ($7,300,000 minus all of the foregoing fees and expenses). In addition, Lead Plaintiff may seek payment not to exceed $3,500 for its time and expenses incurred in representing the Class.

To obtain the Notice or a copy of the Proof of Claim and Release form ("Proof of Claim and Release"), visit the settlement website at www.LunaInnovationsSecuritiesLitigation.com, send email to [email protected] or write to Luna Innovations Securities Litigation, P.O. Box 2876, Portland, OR 97208-2876.

To get a payment from the Net Settlement Fund you must submit a Proof of Claim and Release by mail postmarked no later than January 16, 2026, or electronically no later than January 16, 2026,establishing that you are entitled to recovery. Failure to submit your Proof of Claim and Release by November 17, 2025, will subject your claim to possible rejection and may preclude you from receiving any payment from the settlement. If you are a Class Member, you will be bound by the settlement and any judgment entered in the Action, whether or not you submit a Proof of Claim and Release.

EXCLUSION FROM THE CLASS - Each Settlement Class Member will be bound by all determinations and judgments in this lawsuit, whether favorable or unfavorable, unless such person or entity mails or delivers a written Request for Exclusion from the Settlement Class in accordance with all the instructions set forth in the Notice that is received or filed, not simply postmarked, on or before January 27, 2026. 

To object to any aspect of the settlement, including the Plan of Allocation, or the applications for attorneys' fees and expenses, you must submit a written objection in accordance with all the instructions set forth in the Notice that is received or filed, not simply postmarked, on or before January 27, 2026. If you object, but also want to be eligible for a payment from the settlement, you must still submit a timely Proof of Claim and Release.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.

If you have any questions about the settlement, you may contact Class Counsel at the following address:

Class Counsel

Lucas E. Gilmore
HAGENS BERMAN SOBOL SHAPIRO LLP
715 Hearst Avenue, Suite 300
Berkeley, CA 94710
Telephone: (510) 725-3000
Facsimile: (510) 725-3001
[email protected]

DATED: October 10, 2025

BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

______________________

¹ All capitalized terms used in this Notice that are not otherwise defined herein shall have the meanings provided in the Amended Stipulation and Agreement of Global Settlement dated May 5, 2025 (the "Stipulation"), which is at www.LunaInnovationsSecuritiesLitigation.com.

URL// www.LunaInnovationsSecuritiesLitigation.com

SOURCE Hagens Berman Sobol Shapiro LLP