Virgin Galactic Holdings, Inc.
Updated
Tuesday, 8 November 2022
02:15 AM (WIB)
No matter where each of us stands on this planet we call home, we all look up to the same place.
That’s why we believe space belongs to everyone: the adventurous, the audacious, and the curious.
We go up to look down.
When we witness the majesty and fragility of Earth from space, something inside us shifts.
We believe this transformation will bring countless benefits to life on our beautiful planet.
For more details, check the website.
02:15 AM (WIB)
No matter where each of us stands on this planet we call home, we all look up to the same place.
That’s why we believe space belongs to everyone: the adventurous, the audacious, and the curious.
We go up to look down.
When we witness the majesty and fragility of Earth from space, something inside us shifts.
We believe this transformation will bring countless benefits to life on our beautiful planet.
For more details, check the website.
Note
8 November 2022A U.S. judge on Monday said British billionaire entrepreneur Richard Branson must face shareholder claims he concealed problems in Virgin Galactic Holdings Inc's
SPCE spaceship program, and sold hundreds of millions of dollars of stock at inflated prices.
While dismissing most claims in the proposed class action, U.S. District Judge Allyne Ross in Brooklyn said shareholders could try to prove that Virgin and Branson defrauded them into overpaying for the space tourism company's shares, which now trade more than 90% below their February 2021 peak.
Shareholders can sue over July 2019 statements that Virgin had made "great progress" overcoming "hurdles" to commercial spaceflight, despite a near-disastrous test flight five months earlier when its rocket plane Unity suffered critical damage.
In a 55-page decision, Ross said shareholders also could sue over approximately $301 million of stock that Branson sold the month after the flight.
Lawyers for Virgin and Branson did not immediately respond to requests for comment.
In seeking a dismissal, they said there was no proof of intent to defraud, and that the defendants had thoroughly disclosed safety and design issues in developing commercial space travel, "unquestionably a high-risk proposition."
Laurence Rosen, a lawyer for the shareholders, declined to comment.
Virgin is based in Tustin, California, and went public in October 2019 by merging with a special purpose acquisition vehicle, Social Capital.
The lawsuit covers shareholders who owned the stock of either from July 10, 2019, to Oct. 14, 2021, when Virgin grounded Unity and delayed its commercial space travel service. Its shares fell 16.8% the next day, to $20.01.
Branson, 72, is worth $3.7 billion, according to Forbes magazine.
In Monday afternoon trading, Virgin shares were up 5 cents at $4.97.
The case is Kusnier et al v. Virgin Galactic Holdings Inc et al, U.S. District Court, Eastern District of New York, No. 21-03070.
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