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 (NYSE: SPCE). On May 4, SPCE's stock fell over 9% after the company announced it would restate certain financial results due to recent SEC comments on accounting rules for SPAC deals. The restatement will affect the consolidated financial statements from its fiscal year ended December 31, 2020, specifically regarding the accounting treatment for warrants from its business combination on October 25, 2019.

Positive

• Investors with SPCE shares can seek legal advice and support regarding their investments from Labaton Sucharow.

Negative

• The announcement of the restatement raises concerns over the company's financial reporting accuracy.
• SPCE's stock experienced a significant decline of over 9%, indicating potential investor loss of confidence.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510006049/en/

FAQ

What prompted the investigation into Virgin Galactic (SPCE)?

Labaton Sucharow is investigating Virgin Galactic due to potential securities violations and breach of fiduciary duty claims.

Why did SPCE's stock drop on May 4, 2023?

SPCE's stock dropped over 9% following the announcement that the company would restate past financial results in response to SEC comments.

What financial statements are being restated by Virgin Galactic?

Virgin Galactic will restate its consolidated financial statements included in its Annual Report for the fiscal year ended December 31, 2020.

What specific accounting issue is Virgin Galactic addressing?

The restatement is due to the accounting treatment for the warrants of Social Capital Hedosophia Holdings Corp. related to SPCE's business combination on October 25, 2019.

How can SPCE shareholders protect their investments?

Investors can contact Labaton Sucharow for free information and support to protect their investments.