New York, New York--(Newsfile Corp. - June 4, 2021) - WHY: Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of Virgin Galactic Holdings, Inc. (NYSE: SPCE) resulting from allegations that Virgin Galactic may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Virgin Galactic securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to http://www.rosenlegal.com/cases-register-2087.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action.
WHAT IS THIS ABOUT: On April 30, 2021, after trading hours, Virgin Galactic stated in a Current Report on a Form 8-K that, following its review of a recent statement issued by the U.S. Securities and Exchange Commission on April 12, 2021, and consulting with its advisors, it will restate its consolidated financial statements included in its Annual Report on a Form 10-K for the fiscal year ended December 31, 2020. The restatement is due to the accounting treatment for the warrants of Social Capital Hedosophia Holdings Corp. that were outstanding at the time of Virgin Galactic's business combination on October 25, 2019. On this news, Virgin Galactic's stock price fell $2.01 per share, or 9%, to close at $20.14 per share on May 3, 2021, the next trading day.
Then on June 4, 2021, market analyst Kerrisdale Capital published a report entitled "Virgin Galactic Holdings, Inc. (SPCE): Putting the Zero in Zero-G[.]" The Kerrisdale report stated, among other things, that "[a]fter going public in October 2019 by way of a merger with a 'blank check' company, Virgin Galactic has seen its share price and trading volume soar[,]" but that "Virgin Galactic's $250,000+ commercial 'spaceflights' - if they ever actually happen, after some 17 years of delays and disasters - will offer only the palest imitations of these experiences." The report further stated that "[t]he original sin goes back to SpaceShipOne, which was jury-rigged to just barely win the X Prize, with no potential for further scaling up to true orbital spaceflight[,]" and that "[i]n the long run, this approach is a dead end - too expensive, unappealing, and uncompetitive to garner sizable revenues - a fact only masked, temporarily, by canny marketing."
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience or resources. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
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Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
lrosen@rosenlegal.com
pkim@rosenlegal.com
cases@rosenlegal.com
www.rosenlegal.com
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