News From Law.com

Richard Branson, founder of California-based space tourism developer Virgin Galactic Holdings, and the company's board were targeted in the Delaware Court of Chancery for allegedly breaching their fiduciary duties by failing to keep investors informed of safety issues on space flights. Robbins Geller Rudman & Dowd and Robbins LLP filed a public version of shareholder Kimberley Espinosa's derivative complaint on Tuesday, alleging that Branson made over $1.1 billion by selling Virgin Galactic shares at a price which had been artificially inflated due to the public’s lack of awareness of complications occurring on test flights, including the death of four people and the narrow avoidance of several other accidents. 'Despite the near misses, loss of life and questionable safety record, Branson was determined to be the first billionaire in space,' states the complaint, asserting that he was particularly motivated by his rivalry with Jeff Bezos and Blue Origin. Branson allegedly dumped his Virgin Galactic stock before the public learned of an FAA investigation.

Aerospace & Defense

September 04, 2024, 5:43 PM