Virgin Galactic survived an "accident"" during his flight to the edge of space 11 July.
12 Virgin Galactic announced in a july statement the SEC, that sells ordinary shares for the amount of $500 million.
The application did not mention, that during his flight at the edge of space the day before, his plane deviated from its permission
Investigation of the incident
13 Richard Branson filed an application with the SEC for the sale of approximately $10,5 million of its shares, which is approximately 300 million dollars.
- FAA Launches Investigation 23 July, but the accident was not made public until 1 September
Regardless of the faa connection, Branson and Virgin Galactic, maybe, made a mistake, without including in-flight issues in SEC filings, announcing the sale of their shares, according to Stephen Diamond, Associate Professor of Law at Santa Clara University.
"The company will be necessary to disclose any material non-public information.. Like Branson, – Diamond said. "The key issues here are, which are not easy to answer, are as follows:, whether proper disclosure has been made and whether the information has been material.
I think, that in most cases, if your main product could potentially blow up people in outer space, this would be considered essential to potential investors.".
Once there's some clarity in the FAA investigation, The SEC may conduct its own investigation, said Peter Haveles, Experienced Securities Lawyer at McDermott Will Law Firm & Emery.
The whole world followed the company's flight The whole world followed the company's flight
- The public offering was not the first for Virgin Galactic., which went public via SPAC in October 2019 of the year. In August 2020 the company has attracted more than a year $400 million, by selling shares. Branson also has a history of selling Virgin Galactic shares.: he made a sale on $500 million in May 2020 years and sale on $150 million in April this year.
"FAA investigations are lengthy., time-consuming and unpredictable, therefore, these facts may weaken any claims. ", – Diamond said. "But I definitely foresee a lawsuit".
