Class Action Lawsuit Filed Against Virgin Galactic Alleging Securities Fraud

Michael Colglazier (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

A class action lawsuit was filed in New York on Dec. 7 alleging securities fraud by Virgin Galactic, which went public on the New York Stock Exchange (NYSE) in October 2019 after merging with Chamath Palihapitiya’s Social Capital Hedosophia (SCH).

Named in the lawsuit are Virgin Galactic Holdings, CEO Michael Colglazier, former CEO George Whitesides, former current chief financial officer Doug Ahrens, and former chief financial officer Jon Compagna.

The lawsuit was filed amid years-long delays in the start of commercial human suborbital flights that have caused a sharp decline in the value of the stock. Virgin Galactic began trading on the New York Stock Exchange at an opening price of $12.34 on Oct. 28, 2019. The stock is now trading at $14.46 having previously soared to a high of $62.80.

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Virgin Galactic Reports $130 Million Q1 Net Loss, Delays Next Flight Test

Flight test, delayed from February, postponed again due to problem discovered on WhiteKnightTwo carrier aircraft. Company will update schedule next week.

LAS CRUCES, N.M., May 10, 2021 (Virgin Galactic PR) – Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”), a vertically integrated aerospace and space travel company, today announced its financial results for the first quarter ended March 31, 2021.

“We continue to make strides towards our strategic objectives and have solid momentum as we focus on completing our flight test program,” said Michael Colglazier, Chief Executive Officer of Virgin Galactic. “We are committed to delivering one of the world’s most unique and transformational customer experiences, with safety at the core of everything we do. Our greatest asset is our incredibly talented group of employees, and the strength of the leadership team we have assembled for the next phase of our journey.”

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Virgin Galactic Delays Space Tourism Flights to 2022, Lost $273 Million Last Year

WhiteKnightTwo and SpaceShipTwo fly right overhead. (Credit: Kenneth Brown)
  • Rollout of Second Spaceship Scheduled to Take Place on March 30
  • Announced Expected Timing of Revenue-Generating Flight with the Italian Air Force
  • Next Rocket-Powered Spaceflight Targeted to Occur in May

LAS CRUCES, N.M. (Virgin Galactic PR) — Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”), a vertically integrated aerospace and space travel company, today announced its financial results for the fourth quarter and full year ended December 31, 2020.

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Virgin Galactic Replaces CFO

The engine continued to fire for 60 seconds. (Credit: Kenneth Brown)

LAS CRUCES, NM (Virgin Galactic PR) — Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic”), a vertically integrated aerospace and space travel company, today announced the appointment of Doug Ahrens as its new Chief Financial Officer, effective March 1, 2021. Ahrens will succeed Jon Campagna, who is stepping down as Chief Financial Officer following Virgin Galactic’s successful transition from private to public company.

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