Virgin Galactic Holdings faces a lawsuit from an investor who claims he lost money when the space-tourism company announced that it would restate its results due to SEC guidance about the accounting treatment of warrants, Bloomberg reports.
The investor, Shane Lavin, said in the lawsuit filed in federal court in Brooklyn, New York, that Virgin Galactic and its executives knew that the results they were reporting were wrong. They are seeking class-action status for their lawsuit. Many other SPACs have made or are considering similar restatements due to the accounting treatment of warrants.
Virgin Galactic’s stock has been volatile. Since May 3, the day of the price drop that Lavin is suing over, its shares have climbed 55 percent. Read more.
