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.