Luna Innovations Inc (LUNA) and Hansen Medical, Inc. (HNSN) Friday reached a settlement agreement to resolve their outstanding litigation, with both agreement for a partnership. The shares of both Luna and Hansen surged more than 15%
The Confidential Settlement Agreement reached between the companies is expected to resolve the suit filed by medical robotics developer Hansen against Luna in a California Superior Court.
The agreement enables the resolution of the litigation between the two parties related to Luna's bankruptcy filing in the Western District of Virginia.
Commenting on the settlement, Frederic Moll president and CEO, Hansen Medical said, "We are pleased to successfully resolve our outstanding litigation with Luna and we are looking forward to partnering with Luna in developing important new medical devices that utilize Luna's fiber optic shape sensing technology."
"The intellectual property agreements between Hansen Medical, Luna and Intuitive Surgical will further the development of this technology and its application in the delivery of therapeutic treatments, which will benefit both physicians and patients," Moll added.
Instrumentation solutions and pharmaceutical nanomedicines company Luna today filed with the bankruptcy court its First Amended Joint Plan of Reorganization, other bankruptcy documents to implement the Settlement Agreement and allow the Company to emerge from Chapter 11 reorganization as quickly as possible.
According to Luna's plan, the company proposes to pay 100% of its due and payable valid claims and its stockholders will retain their shares of its common stock. Luna had filed for bankruptcy protection in July following a verdict in April from patent infringement suit filed by Hansen.
The Superior Court of the State of California, County of Santa Clara, reached a verdict in favor of Hansen determining that Luna Innovations breached its contract with Hansen, as well as misappropriated trade secrets belonging to Hansen.
Luna made an appeal with the court to reduce the $36 million penalty awarded to Hansen.
Luna would issue Hansen 9.9% of the total outstanding shares after issuance and a warrant to purchase additional shares of Luna's Common Stock for three years after the Effective Date, at a purchase price of $0.01 per share for Hansen to maintain that equity position for three years.
The settlement also provides that Luna issue $5 million secured promissory note payable over four years to Hansen. The security interest of the notes may be subordinated in favor of a working capital credit facility, Luna said.
Luna's intellectual property related to shape sensing technology in the fields of medical robotics and medical non-robotics would be licensed to Hansen Medical.
Hansen with respect to certain fiber optic shape sensing and localization technology would also enter into a Cross License Agreement with Intuitive Surgical, Inc. (ISRG).
HNSN closed Friday's trading at $2.67, down $0.18 or 6.32%, on a volume of 0.62 million shares on the Nasdaq. LUNA closed at $1.47, up $0.02 or 1.34% on the Nasdaq. In after hours, HNSN gained 15.73% or $0.42 to trade at $3.09, while LUNA shares soared 45.58% or $0.67, trading at $2.14.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.