- Virgin Galactic Holdings is looking at a lawsuit from its stockholders.
- The company recently refunded $175K to a Bulgarian customer.
- SPCE stock was trading at a market value of $5.5.
Why Are Shareholders Suing The Owner?
Richard Branson, the business magnet and the owner of Virgin Galactic Holdings (NYSE: SPCE) and Virgin Orbit (NYSE: VORB), is about to face a lawsuit by the shareholders of his organization. They say that the company and the owner have defrauded them. But the news has not affected the price of SPCE stock.
According to Reuters, the stockholders may go on to prove that Richard Branson and Virgin Galactic Holdings have deceived them. They allege that the owner and the company kept issues associated with their space program secret while revealing their plans to take the organization public. He also sold the SPCE stocks worth $301 Million at inflated prices.
Richard announced in 2019 that he will take Virgin Galactic Holdings public by joining hands with a special purpose acquisition company (SPAC), Social Capital Hedosophia. Both the organizations laid out a plan regarding test flight of VSS Unity, their suborbital rocket. The spaceship reportedly did not even try for a glide test until May 1, 2020.
Recently, Richard Branson refunded a customer from Bulgaria. The man paid $175,000 for the space flight registration but eventually got tired. He asked for a refund from the company and got the money back. Virgin Galactic Holdings was keeping the man abreast with updates, but it was not enough for the Elk Grove resident which led him to take the step.
The company also hired former Head of Content at Disney Branded Television and National Geographic, Jayanta Jenkins. He left the position in July 2022 and had an extensive experience of 20 years. The company intends to launch their space flight in 2023 and believes that he is an amazing addition to the team in telling their story to the global audience.
SPCE Stock Price Action
The chart shows a bearish trend in SPCE stock price throughout 2022. The shares saw their highest trading volume of the year during mid-February and traded at the year’s high in January 2022 at $13.65. It maintained a resistance at $11.3 and a support at $5.5 between April 2022 to mid-May. The value broke support levels and traded at $5.14 in the month.
SPCE stock finally found support above $5.5 but a breakdown came by the end of September 2022, and changed hands at $4.71. Currently, it holds a support at $4 and registered a recoil during mid-October. SPCE stock was trading at a market price of $5.5 at the publication time trying to break the $6 resistance levels.
Source: https://www.thecoinrepublic.com/2022/11/12/spce-stock-preparing-a-moonshot-amid-the-lawsuit/