Virgin Galactic Keeps Some Claims Out of Investor Suit on Safety

Virgin Galactic Holdings Inc. investors failed to convince a federal judge to reinstate claims that the company miscast a near-fatal spacecraft test run as safe and that founder Richard Branson engaged in insider sales following a troubled flight.

There also won’t be an immediate appeal on whether investors who bought into Virgin Galactic after it went public through a merger can sue it for statements it made before the tie-up. Even though the question is part of a “developing area of securities law” around mergers with special purpose acquisition companies, the investors didn’t meet the standard for immediate review, Judge ...