Virgin Galactic Investors Seek OK of $8.5 Million SPAC Suit Deal

Virgin Galactic Holdings Inc., its leaders, and a prominent venture capitalist have agreed to an $8.5 million settlement of investors’ claims that the company misrepresented spacecraft safety before going public, according to court filings.

The proposed settlement with the space tourism company, founder Richard Branson, and others is fair and should receive preliminary approval, the investors told the US District Court for the Eastern District of New York in a supporting memorandum of law filed Tuesday.

The deal is among several bringing suits over special purpose acquisition company mergers to a close. Chamath Palihapitiya, whose Social Capital VC fund backed ...