SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF STOCKHOLDER DERIVATIVE ACTIONS<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTO:<\/p>\n<\/td>\n ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF VIRGIN GALACTIC HOLDINGS, INC. (\u201cVIRGIN GALACTIC\u201d OR THE \u201cCOMPANY\u201d) COMMON STOCK AS OF APRIL 23, 2026 (\u201cCURRENT VIRGIN GALACTIC STOCKHOLDERS\u201d).<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n PLEASE READ THIS SUMMARY NOTICE CAREFULLY AND IN ITS ENTIRETY AS YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THE LITIGATION.<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260528250274\/en\/<\/a><\/span><\/p>\n For Investor Relations inquiries:\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n YOU ARE HEREBY NOTIFIED <\/b>that the above-captioned consolidated stockholder derivative action (the \u201cDemand Futile Action\u201d) is being settled on the terms set forth in a Stipulation and Agreement of Settlement dated April 23, 2026 (the \u201cStipulation\u201d).<\/td>\n<\/tr>\n \n \n \u00a0<\/td>\n<\/tr>\n \n The Derivative Actions are brought derivatively on behalf of nominal defendant Virgin Galactic and allege that, inter alia<\/i>, between July 10, 2019, through October 14, 2021, at least, the Individual Defendants breached their fiduciary duty to the Company by (i) misrepresenting operations to the investing public, who purchased Company stock at artificially inflated prices; (ii) causing the Company to overpay with stock spent to acquire Virgin Galactic\u2019s legacy business; and (iii) as to certain of them, selling Company stock while possessing material nonpublic information about material issues at artificially inflated prices. Plaintiffs allege that the Individual Defendants had knowledge of the destruction of the Company\u2019s spaceship stabilizers in 2019, Federal Aviation Administration violations that led to grounding flights in 2021 and suspension of the Company\u2019s license, and undisclosed delays in commercial launches due to needed repairs, but failed to disclose the same to investors, instead making a series of materially false and misleading statements touting the Company\u2019s purported safety efforts, among other things, including in filings with the Securities and Exchange Commission and proxy solicitations governed by Section 14(a) of the Securities Exchange Act of 1934. The Derivative Actions allege that, as a result of the foregoing, the Company experienced reputational and financial harm.<\/td>\n<\/tr>\n \n \n \n Defendants have denied and continue to deny each and all of the claims and allegations of wrongdoing asserted in the Derivative Actions.<\/td>\n<\/tr>\n \n \n \n The consideration for the proposed Settlement includes: (1) a cash payment of two million seven hundred fifty thousand dollars ($2,750,000.00) (the \u201cCash Payment\u201d), which the Defendants shall cause their insurer(s) to pay to Virgin Galactic; and (2) Virgin Galactic\u2019s agreement to adopt and maintain certain corporate governance reforms and procedures, as outlined in Exhibit A to the Stipulation (the \u201cReforms\u201d), which shall be maintained for three years. Additionally, Virgin Galactic shall pay, subject to Court approval, one million three hundred seventy-five thousand dollars ($1,375,000.00) to Plaintiffs\u2019 Counsel for their attorneys\u2019 fees and expenses (the \u201cFee and Expense Amount\u201d) based on the substantial benefit that will be conferred upon the Company and its stockholders by the settlement consideration. Plaintiffs\u2019 Counsel shall also apply to the Court for service awards to be paid to the five Plaintiffs in an amount of up to two thousand five hundred dollars ($2,500.00) each (the \u201cService Awards\u201d), to be paid out of the Fee and Expense Amount.<\/td>\n<\/tr>\n \n \n \n \n On July 28, 2026 at 11:00 a.m., a hearing will be held before the Honorable Orelia E. Merchant, at the United States District Court for the Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201, in Courtroom 6C South (the \u201cSettlement Hearing\u201d), for the purpose of determining whether the Settlement should be approved as fair, reasonable, and adequate and whether the Court should approve the agreed-to Fee and Expense Amount and the Service Awards for Plaintiffs. Because this is not a class action, except as otherwise provided for in the Stipulation with respect to the Plaintiffs, no Current Virgin Galactic Stockholder has the right to receive any individual compensation as a result of the Settlement.<\/i><\/b><\/td>\n<\/tr>\n \n \n \n \n This Summary Notice provides a condensed overview of certain provisions of the Stipulation and the full Notice of Pendency and Proposed Settlement of Stockholder Derivative Actions (the \u201cNotice\u201d). It is not a complete statement of the events of the Derivative Actions or the terms set forth in the Stipulation. This summary should be read in conjunction with, and is qualified in its entirety by reference to, the text of the Stipulation. For additional information about the claims asserted in the Derivative Actions, and the terms of the proposed Settlement, you may inspect the Stipulation and its exhibits and other papers at the Clerk\u2019s office in the Court at any time during regular business hours. In addition, copies of the Stipulation and its exhibits and the Notice are available on the Investor Relations page of the Company\u2019s website, https:\/\/investors.virgingalactic.com\/overview\/default.aspx<\/a>.<\/td>\n<\/tr>\n \n \n \n \n The Court may, in its discretion, change the date and\/or time of the Settlement Hearing without further notice to you. If you intend to attend the Settlement Hearing, please consult the Court\u2019s calendar or the Investor Relations page of the Company\u2019s website, https:\/\/investors.virgingalactic.com\/overview\/default.aspx<\/a>, for any change in the date and\/or time of the Settlement Hearing.<\/td>\n<\/tr>\n \n \n \n \n Inquiries about the Derivative Actions or the Settlement may be made to: (i) Timothy Brown, The Brown Law Firm, P.C., 767 Third Avenue, Suite 2501, New York, NY 10017, Telephone: (516) 922-5427, Email: tbrown@thebrownlawfirm.net<\/a>; (ii) Thomas J. McKenna, Gainey McKenna & Egleston, 260 Madison Ave., 22nd Floor, New York, NY 10016, Telephone: (212) 983-1300, Email: tjmckenna@gme-law.com<\/a>.<\/td>\n<\/tr>\n \n \n \n \n You may enter an appearance before the Court, at your own expense, individually or through counsel of your choice. If you want to object at the Settlement Hearing, you must be a Current Virgin Galactic Stockholder and you must first comply with the procedures for objecting that are set forth in the Notice. Any objection to any aspect of the Settlement must be filed with the Clerk of the Court and sent to Plaintiffs\u2019 Counsel and Defendants\u2019 Counsel no later than July 7, 2026 (21 days before the Settlement Hearing)<\/b>, in accordance with the procedures set forth in the Stipulation and the Notice. Any Current Virgin Galactic Stockholder who fails to object in accordance with such procedures will be bound by the Order and Final Judgment of the Court granting final approval to the Settlement and the releases of claims therein, and shall be deemed to have waived the right to object (including the right to appeal) and forever shall be barred, in this proceeding or in any other proceeding, from raising such objection.<\/td>\n<\/tr>\n \n \n \n \n PLEASE DO NOT CALL THE COURT OR DEFENDANTS WITH QUESTIONS ABOUT THE SETTLEMENT.<\/b><\/td>\n<\/tr>\n<\/table>\n <\/p>\n
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Eric Cerny \u2013 Vice President, Investor Relations
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VG-IR@virgingalactic.com<\/a><\/p>\n