SPCE ALERT– Nationally Ranked Shareholder Rights Firm Labaton Sucharow is Investigating Virgin Galactic Holdings Inc. (NYSE: SPCE) For Potential Securities Violations and Breach of Fiduciary Duty

Rhea-AI Summary

Labaton Sucharow is investigating potential securities violations and fiduciary duty claims against Virgin Galactic Holdings (SPCE). On May 4, SPCE shares fell over 9% following the company's announcement to restate financial results due to SEC comments on special-purpose acquisition companies. The restatement affects the consolidated financial statements in the 10-K for the fiscal year ended December 31, 2020, specifically regarding the accounting treatment of warrants from the business combination dated October 25, 2019. Investors seeking to protect their interests can contact Labaton Sucharow for assistance.

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• None.

Negative

• SPCE shares dropped over 9% on May 4 due to restatement announcement.
• Company will restate financial statements for the fiscal year ending December 31, 2020.
• Restatement is related to SEC comments on accounting treatment for warrants.

Labaton Sucharow, a nationally ranked and award-winning shareholder rights law firm, is investigating potential securities violations and breach of fiduciary duty claims against Virgin Galactic Holdings Inc. (NYSE: SPCE).

On May 4, Virgin Galactic Holdings Inc. closed down over 9% on enormous volume after the space tourism company said it would restate certain past financial results in the wake of recent comments by the Securities and Exchange Commission on the accounting treatment of deals involving special-purpose acquisition companies.

The Company reported in a Current Report on Form 8-K that, following its review of the SEC Statement and consulting with its advisors, the Company will restate its consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The restatement is due solely to the accounting treatment for the warrants of Social Capital Hedosophia Holdings Corp. that were outstanding at the time of the Company’s business combination on October 25, 2019.

If you currently own shares and/or options of SPCE and want to receive additional information and protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at david@labaton.com

About the Firm

Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.

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FAQ

What caused Virgin Galactic's stock drop on May 4, 2023?

Virgin Galactic's stock dropped over 9% due to the announcement of a financial restatement following SEC comments.

What financial statements is Virgin Galactic restating?

Virgin Galactic is restating its consolidated financial statements for the fiscal year ended December 31, 2020.

What specific issue prompted the financial restatement for Virgin Galactic?

The restatement is due to the accounting treatment of warrants from the company's merger with Social Capital Hedosophia Holdings.

Who can I contact for more information about potential securities violations involving SPCE?

You can contact David J. Schwartz at Labaton Sucharow for additional information regarding potential securities violations.