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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FAA Decides Bezos, Branson and Shatner Are Astronauts After All

  • Everyone who exceeds 50 miles by Dec. 31 will receive commercial astronaut wing even if they were just passengers
  • Nobody after that will even if they pilot a ship
  • Agency reverses earlier decision to award wings only to those essential to flight operations/success
  • FAA says this is what was intended all along

WASHINGTON (FAA PR) – With the advent of the commercial space tourism era, starting in 2022, the Federal Aviation Administration (FAA) will now recognize individuals who reach space on its website instead of issuing Commercial Space Astronaut Wings. Any individual who is on an FAA-licensed or permitted launch and reaches 50 statute miles above the surface of the Earth will be listed on the site. 

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Omaze and Virgin Galactic Announce Winner of Once-in-a-Lifetime Trip to Space

Virgin Galactic and Sir Richard Branson’s Omaze sweepstakes raised an anticipated $1.7M in grants to support Space for Humanity’s mission to democratize space travel

LOS ANGELES, C.A., November 24, 2021 (Omaze PR) — Today, Omaze, the charity fundraising platform that offers the chance to win once-in-a-lifetime experiences and prizes, and Virgin Galactic, revealed that Keisha S. from Antigua and Barbuda is the exclusive winner of two seats on a Virgin Galactic commercial space flight. Born and raised in Antigua, Keisha is a health and energy coach who is passionate about empowering women to live their best lives. She has always had a lifelong dream of going to space, and hopes to bring her daughter, an astrophysics student, as her guest on this incredible journey.

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Virgin Galactic’s WhiteKnightTwo Returns to Mojave for Overhaul

by Douglas Messier
Managing Editor

Virgin Galactic’s WhiteKnightTwo VMS Eve mothership returned to the Mojave Air and Space Port in California on Saturday for the start of 8-10 months of upgrades and repairs. The dual fuselage airplane flew from its operating base at Spaceport America in New Mexico to the spaceport where it was built and first flew 13 years ago on Dec. 21, 2008.

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Stucky Turns Blue: Joins Jeff Bezos’ Space Company After Departure From Richard Branson’s Virgin Galactic

Richard Branson (l) and George Whitesides (r) walk with SpaceShipTwo pilots David Mackay and Mark Stucky after a successful glide flight. (Credit: Kenneth Brown)

Mark Stucky, whom Virgin Galactic demoted as its director of flight test in May and fired two months later, has joined Jeff Bezos’ Blue Origin space company, CNN reports.

Stucky said he will join Blue Origin’s “Advanced Development Programs” team, where he said in a statement to CNN that he will “do my best to contribute to [CEO Jeff Bezos’] amazing vision of humans not just having a continuous presence in space but truly becoming a space-faring species.”

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Virgin Galactic Delays Italian Flight Test; Start of Commercial Service Delayed to Q4 2022

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange. (Credit Virgin Galactic)
  • Recent material testing returned new data that requires further analysis
  • Italian Air Force mission to follow enhancement period
  • Potential supplier component issue has been resolved
  • Commercial service expected to commence in Q4 2022

LAS CRUCES, NM (Virgin Galactic PR) — Virgin Galactic today announced that it will now begin its planned enhancement program for VMS Eve and VSS Unity and will conduct the Unity 23 test flight after this work is complete.

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FAA Examination of Blue Origin Safety Issues Likely to be Very Narrow

New Shepard launch (Credit: Blue Origin webcast)

by Douglas Messier
Managing Editor

The Federal Aviation Administration (FAA) has said it will examine safety issues about Blue Origin’s crewed suborbital New Shepard vehicle raised by a group of current and former employees in an open letter published on Thursday.

The announcement comes 11 days before four paying customers, one reported to be Star Trek star William Shatner, are scheduled to board New Shepard for a trip to space. While a federal safety review might sound reassuring to these ticket holders, what does it actually mean in practice?

Probably not much.

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Virgin Galactic’s Next Challenge: The Flight of the Vested?

Richard Branson and other passengers float around in weightlessness. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

This was supposed to be the Summer of Virgin Galactic. The company would complete the three remaining suborbital flight tests of SpaceShipTwo VSS Unity, the second one with Richard Branson aboard. The company’s newest space tourism vehicle, SpaceShipIII, would begin its flight tests.

Once VSS Unity tests were complete, engineers would spend four months making a series of repairs and upgrades to the spacecraft and its WhiteKnightTwo mothership, VMS Eve. And then in early 2022, the company would use both spaceships to fly tourists on suborbital joy rides that were originally projected to begin 15 years earlier in 2007.

Sounds easy enough, right? It wasn’t. The Summer of Virgin Galactic went about as well as the Summer of George on Seinfeld. If best laid plans of mice, men and Costanzas often go awry, Virgin Galactic’s schedules are guaranteed to move significantly to the right. Years to the right.

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Bank of America Rips Virgin Galactic for Failure to Disclose Out of Airspace Mishap on Richard Branson Flight

Richard Branson and other passengers float around in weightlessness. (Credit: Virgin Galactic)

Editor’s Note, Sept. 26: 2021: Story updated to reflect that Richard Branson began selling $300 million worth of Virgin Galactic shares on Aug. 10 the day before the FAA notified the company of a mishap during the July flight that carried the billionaire to space. The sale continued through Aug. 12.

by Douglas Messier
Managing Editor

Analysts at Bank of America who cover Virgin Galactic’s publicly-traded stock are not amused by the company’s failure to disclose that a SpaceShipTwo suborbital flight carrying founder Richard Branson flew outside of its assigned airspace on July 11, resulting in an investigation by the Federal Aviation Administration (FAA) and the grounding of the company’s only operational space plane.

“Point blank, in our view, it is unacceptable to have an event during a flight that, per FAA regulations, is considered a mishap and then claim that the mission was a full success,” analyst Ronald Epstein wrote in a note to investors. “The old adage, it’s easier to ask for forgiveness than permission, generally is a poor strategy in aviation.”

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Virgin Galactic Delays Next SpaceShipTwo Flight

VSS Unity in flight on July 11, 2021. (Credit: Virgin Galactic)

LAS CRUCES, N.M. (Virgin Galactic PR)– Virgin Galactic Holdings, Inc. (NYSE:SPCE) (the “Company” or “Virgin Galactic”), a vertically integrated aerospace and space travel company, today announced an update regarding the timing of its next test flight “Unity 23” with the Italian Air Force.

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FAA: Virgin Galactic’s SpaceShipTwo Grounded Until Investigation Completed

Richard Branson and other passengers float around in weightlessness. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

The Federal Aviation Administration (FAA) said today that Virgin Galactic cannot launch its SpaceShipTwo suborbital vehicle until the agency completes an investigation into an anomaly that occurred on a flight test that carried company founder Richard Branson on July 11.

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Virgin Galactic Announces First Commercial Research Mission

A view from inside the cockpit. (Credit: Virgin Galactic)
  • “Unity 23” Test Flight Will Mark First Research Customer Mission
  • Partnership with Italian Air Force Marks First Mission of Its Kind led by European Country

LAS CRUCES, N.M. (Virgin Galactic PR) — Virgin Galactic Holdings, Inc. (NYSE: SPCE) (the “Company” or “Virgin Galactic”), a vertically integrated aerospace and space travel company, today announced the manifest for the next rocket-powered test flight of SpaceShipTwo Unity from Spaceport America, which will be the first commercial, human-tended research mission for the Company.

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Virgin Galactic Statement About Anomaly on Richard Branson’s Suborbital Space Flight

Virgin Galactic Statement

We dispute the misleading characterizations and conclusions in the New Yorker article published today.

The safety of our crew and passengers is Virgin Galactic’s top priority. Our entire approach to spaceflight is guided by a fundamental commitment to safety at every level, including our spaceflight system, our test flight program and our rigorous pilot training protocol.

Unity 22 was a safe and successful test flight that adhered to our flight procedures and training protocols. When the vehicle encountered high altitude winds which changed the trajectory, the pilots and systems monitored the trajectory to ensure it remained within mission parameters. Our pilots responded appropriately to these changing flight conditions exactly as they were trained and in strict accordance with our established procedures. Although the flights ultimate trajectory deviated from our initial plan, it was a controlled and intentional flight path that allowed Unity 22 to successfully reach space and land safely at our Spaceport in New Mexico. At no time were passengers and crew put in any danger as a result of this change in trajectory.

The Unity 22 flight further reaffirms our technical readiness, our rigorous pilot training program and the inherent safety of our spaceflight system, particularly in light of changing flight conditions. As we move toward commercial service, we are confident we have the right safety culture, policies and processes in place to build and operate a safe and successful business over the long term.

Statement on the FAA

Although the flight’s ultimate trajectory deviated from our initial plan, the Unity 22 flight did not fly outside of the lateral confines of the protected airspace. As a result of the trajectory adjustment, the flight did drop below the altitude of the airspace that is protected for Virgin Galactic missions for a short distance and time (1 minute and 41 seconds) before re-entering restricted airspace that is protected all the way to the ground for Virgin Galactic missions. At no time did the ship travel above any population centers or cause a hazard to the public. FAA representatives were present in the control room during the flight and in post-flight debriefs. We are working in partnership with the FAA to address the airspace for future flights.

Report: Branson’s Flight into Space Experienced Serious Anomaly; Company Fired Flight Test Director

Richard Branson and other passengers float around in weightlessness. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

By all appearances, Richard Branson’s 17-years-in-the-making flight to the edge of space went exactly as planned on July 11. Or at least that was the impression left by Virgin Galactic’s webcast of SpaceShipTwo VSS Unity’s flight test from Spaceport America in New Mexico.

But, for the second time in four suborbital flights, VSS Unity experienced a serious anomaly. The ship with its hybrid engine firing wasn’t rising steeply enough as it soared toward space, Nicholas Schmidle reports in The New Yorker:

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Virgin Galactic Raises Ticket Prices to $450,000, Delays Commercial Flights 2 Quarters, and Reports $94 Million 2nd Quarter Net Loss

Richard Branson and other passengers float around in weightlessness. (Credit: Virgin Galactic)

by Douglas Messier
Managing Editor

On July 11, Richard Branson returned from a suborbital journey declaring the start of a new era of flight that would make outer space open to everyone, and promoting a raffle for two averagenauts to fly aboard early flights of Virgin Galactic’s SpaceShipTwo.

Today, Virgin Galactic announced it was hiking the cost of those seats from $250,000 to $450,000 for new ticket buyers. It was the second time the company has raised ticket prices even before any paying passengers have flown. In 2013, the price rose from $200,000 to $250,000. The first paying passengers haven’t even flown yet.

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