Luna Innovations

Representation of Luna Innovations in its chapter 11 case in the Western District of Virginia. The developer of molecular and sensing technologies filed the bankruptcy case under the weight of a $36 million California state court verdict in favor of Hansen Medical Inc. The California state court jury found that Luna had misappropriated trade secrets after Luna and Hansen began exploring whether Luna’s fiber-optic technologies could be adapted for Hansen’s robotic catheter applications. Under a deal reached during the chapter 11 case, Luna agreed to pay Hansen $5 million in the form of a secured promissory note payable over four years, provided Hansen a license to Luna’s sensing technology and granted Hansen shares of Luna common stock equal to 9.9 percent of the total outstanding shares, among other terms. On January 12, 2010, Luna confirmed a plan of reorganization which incorporated its settlement with Hansen, provided 100 percent recovery for creditors and allowed existing shareholders to keep their shares.