Virgin Galactic Tricked Investors Of Its Financial Situation, Class Action Contends
Space travel company Virgin Galactic is being sued by one of its investors for allegedly deceiving him and others of the company’s adherence to regulations that ended up hurting their financial interests and stakes.
Investor Sued Space Travel Company
Shane Lavin has accused Virgin Galactic of allegedly tricking company investors and stakeholders into believing that the company has followed SEC or Security and Exchange Commission guidelines. However, the truth is quite the complete opposite.
It all stemmed way back in 2019 when Virgin Galactic was still in its infancy. It is reported that the company has received a notice from SEC authorities about their financial filing and other necessary steps in starting their business. The company was allegedly informed that it may need to change and introduce some changes to its share classification scheme.
The Virgin Galactic SEC Class Action Lawsuit contended that Virgin Galactic and their leaders completely disregarded SEC’s opinion and went ahead with their original plan.
They have publicized this information, to which the media had a field day with the allegedly misconstrued company financial information.
This eventually led to Virgin Galactic’s stock value increase.
However, Virgin Galactic was forced to adapt to the changes being asked from them by state regulators. Upon the release of the news of the change, the company’s stocks tanked in their numbers.
Lavin continued that have he and other investors known the truth that Virgin Galactic hid from them, they would not have made any investments with the company. He has asked the court to ask Virgin Galactic to pay up for damages, court fees, and attorney fees involved in the case.
The filed class action has also asked the court to review its petition to form and represent a Class consisting of Virgin Galactic investors who ended up buying stocks and making investments in the company between 26th of October 2019 and 30th of April 2021.
This is an ongoing case and Consider The Consumer would continue to report on its developments as soon as the information has been made available to the public.
About Virgin Galactic
Owned by its parent company Virgin Group, Virgin Galactic is a company specializing in developing technologies that would make spaceflight possible soon. The company is aiming to offer space tourists suborbital space trips with their equipment and technology.
Editor’s Note on Virgin Galactic SEC Class Action Lawsuit:
This article feature aims to inform you of the latest class action against Virgin Galactic after the company allegedly lied to everybody about its past financial situation and avoided following SEC orders.
Case Name(s) & No.: Shane Lavin v. Virgin Galactic Holdings, Inc., et al..; Case No.: 1:21-cv-03070
Jurisdiction: United States District Court for the Eastern District of New York
Products/Services Involved: Security and Exchange Commissions Policies
Allegation(s): Virgin Galactic misrepresented its finances to lure investors into making investments in the company.
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