SHAREHOLDER ALERT: Law Firm Pomerantz Reminds Shareholders With Losses On Their Investment In Virgin Galactic Holdings, Inc. Of Class Action And Upcoming Deadline – SPCE | national news
NEW YORK, June 22, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Virgin Galactic Holdings, Inc. (âVirgin Galacticâ or the âCompanyâ) (NYSE: SPCE) and certain of its officers. The class action, filed in United States District Court of the Eastern District of new York, and listed as 21-cv-03070, is in the name of a class consisting of all persons and entities other than the Defendants who have purchased or otherwise acquired Virgin Galactic securities between October 26, 2019 and April 30, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants in violation of federal securities laws and to pursue remedies under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the âExchange Actâ) and rules 10b-5 promulgated by virtue of it, against the Company and certain of its senior executives.
If you are a shareholder who purchased securities of Virgin Galactic during the Class Period, you have up to July 27, 2021 ask the court to appoint you as the principal plaintiff for the group. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Virgin Galactic is an integrated aerospace company developing manned flights for individuals and researchers in the United States
At October 25, 2019, post-commercialization, Virgin Galactic was formed through a business combination between Social Capital Hedosophia Holdings Corp. (“SCH”), a Special Purpose Acquisition Company (“SPAC”), and the predecessor of the then privately held Company, after which SCH changed its name to “Virgin Galactic Holdings, Inc.” and its ticker symbol at âSPCEâ (the âBusiness Combinationâ).
At April 12, 2021, the SEC issued guidance indicating that SPAC warrants, which are instruments that allow investors to purchase additional shares at a fixed price, may need to be classified as liabilities rather than equity for many PSPC transactions. , which were previously recognized as equity in these offers.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operations and compliance policies. Specifically, the Defendants made false and / or misleading statements and / or failed to disclose that: (i) for accounting purposes, SCH warrants should be treated as liabilities rather than shares; (ii) Virgin Galactic had weak disclosure controls and procedures and internal control over financial reporting; (iii) as a result, the Company incorrectly accounted for the SCH warrants that were outstanding at the time of the Business Combination; and (iv) accordingly, the Company’s public statements were materially false and misleading at all material times.
At April 30, 3021, post-trade, Virgin Galactic announced “that it has postponed the publication of its financial results for the first quarter of 2021 following the close of the US markets on Monday, May 10, 2021. Virgin Galactic will now host a conference call to discuss the results and provide a business update that day to 2:00 p.m. Pacific time (5:00 p.m. Eastern Time). The Company is rescheduling its report due to the recent statement released by the [SEC] at April 12, 2021 relating to the accounting treatment of warrants issued by special purpose acquisition companies (the âSEC Statementâ). The press release further stated that “after reviewing the SEC statement and consulting with its advisers, 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 of the Social Capital Hedosophia Holdings Corp. warrants. that were outstanding at the time of the Company’s business combination on October 25, 2019. The Company expects to file the restated financial statements before the new conference call date and estimates that it will record additional non-operating and non-cash expenses for each of the years ended. December 31, 2020 and the 31st of December, 2019. ”
On this news, the Virgin Galactic share price fell $ 2.01 per share, or 9.07%, to close at $ 20.14 per share on May 3, 2021.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext 7980
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SOURCE Pomerantz LLP