Virgin Galactic under probe by US shareholder rights law firm

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Virgin Galactic Holdings, previously headed by Sri Lanka born billionaire Chamath Palihapitiya, is under probe by a nationally-recognized shareholder rights law firm in the United States.

Bragar Eagel & Squire, P.C. is investigating potential claims against Virgin Galactic and two other companies to determine if they violated federal securities laws and/or engaged in other unlawful business practices.On 02 March, news outlets reported on the filing of a shareholder lawsuit alleging that former chairman Palihapitiya took advantage of his insider role at the company to sell some 10 million stock shares for $315 million before abruptly resigning in February 2022.

On this news, Virgin Galactic’s stock price fell $1.17 per share, or 12.42%, to close at $8.25 per share on the following day.

Virgin Galactic has worked to commercialise space flight since 2004, receiving regulatory approval last year to fly customers into space.