the U.S. District Court for the Eastern District of New York (the "District Court") issued an order granting preliminary approval of its proposed settlement with plaintiffs, executed on April 23, 2026, which would resolve all claims pending in the shareholder derivative actions captioned In re Virgin Galactic Holdings, Inc. Derivative Litigation, Case No. 1:22-cv-00933 (E.D.N.Y.) and St. Jean v. Branson et al., Case No. 1:22-cv-7551 (E.D.N.Y.). 

The proposed settlement will result in, among other settlement considerations, the monetary payment of $2.75 million by the Company's insurers to the Company, half of which the Company will retain. Once the District Court issues final approval of the settlement, all claims in these actions and in any currently pending actions that are related to or based upon any of the allegations in these actions are expected to be dismissed or declared moot.