Virgin Galactic Holdings and Richard Branson are facing a proposed class action lawsuit. The Plaintiffs in the lawsuit are shareholders who claim that both Virgin and Branson made statements about the flight program that led them to overpay for company shares. The lawsuit also alleges that the claims made by Virgin and Branson that the Unity rocket plane was successful are not accurate, because the Unity rocket was critically damaged in its test flight.
The stock is trading 90% lower than at its peak performance in early 2021. Shareholders allege that after the flight on which Branson was aboard flew outside the flight plan, but the defendants stated there were no problems. Plaintiffs allege the misstatements led to $301 million in stock sold after the flight.
Shareholders who purchased stock from July 10, 2019 to October 14, 2021 are intended to be included in the lawsuit.
The case is Kusnier et al v. Virgin Galactic Holdings Inc. et al, U.S. District Court, Eastern District of New York, Case No. 21-03070.
This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.
