Space Travel Problems Cause Potential Class Action Lawsuit Against Richard Branson and Virgin Galactic

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.

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Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.


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Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.