Former CEO of Virgin Galactic sued over his pump-and-dump stock sale
Buyer beware: Chamath Palihapitiya, who recently stepped down as CEO of Virgin Galactic, has been sued by some of the company’s stockholders for using his insider position to pump-and-dump his stock while keeping vital information secret illegally.
The complaint, filed on behalf of Virgin Galactic to seek damages from its directors and officers, also alleges that founder Richard Branson pocketed $301 million by dumping his shares while the stock price was “artificially inflated.”
Leaders of the company were well aware of defects in its spacecraft three years before they were publicly disclosed last year, according to the complaint filed in federal court in Brooklyn, New York.
It is unclear from the article whether Branson is being sued as well.
Buyer beware: Chamath Palihapitiya, who recently stepped down as CEO of Virgin Galactic, has been sued by some of the company’s stockholders for using his insider position to pump-and-dump his stock while keeping vital information secret illegally.
The complaint, filed on behalf of Virgin Galactic to seek damages from its directors and officers, also alleges that founder Richard Branson pocketed $301 million by dumping his shares while the stock price was “artificially inflated.”
Leaders of the company were well aware of defects in its spacecraft three years before they were publicly disclosed last year, according to the complaint filed in federal court in Brooklyn, New York.
It is unclear from the article whether Branson is being sued as well.