NEW YORK, May 11, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Virgin Galactic Holdings, Inc. ("Virgin Galactic" or the "Company") (NASDAQ: SPCE). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Virgin Galactic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On April 30, 3021, post-market, Virgin Galactic announced "that it has rescheduled the reporting of its financial results for the first quarter 2021 to following the close of the U.S. 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 at 2:00 p.m., Pacific Time (5:00 p.m., Eastern Time). The Company is rescheduling its reporting due to the recent statement issued by the Securities and Exchange Commission (the 'SEC') on April 12, 2021 relating to the accounting treatment of warrants issued by special purpose acquisition companies (the 'SEC Statement')." The press release further advised that "following its review of the SEC Statement and consulting with its advisors, 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 for the warrants of Social Capital Hedosophia Holdings Corp. that were outstanding at the time of the Company's business combination on October 25, 2019. The Company expects to file the restated financials prior to the new conference call date and estimates that it will recognize incremental non-operating, non-cash expense for each of the fiscal years ended December 31, 2020 and December 31, 2019."
On this news, Virgin Galactic's stock price fell $2.01 per share, or 9.07%, to close at $20.14 per share on May 3, 2021.
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