Virgin Galactic Leaders Settle Derivative Suit for Cash, Reforms

Members of Virgin Galactic Holdings Inc.'s leadership have agreed to pay the space tourism company $2.75 million and implement corporate governance changes to settle a suit over alleged safety misrepresentations, according to court filings.

Founder Richard Branson and prominent venture capitalist Chamath Palihapitiya are among the defendants in the case.

Insurers would make the monetary payment if the deal is approved, according to the investors who brought the suit on behalf of the company in the US District Court for the Eastern District of New York. The settlement is fair and warrants preliminary approval, they told Judge Orelia E. Merchant ...