Judge Says Virgin Galactic Investors Can Continue Branson Suit

A New York federal judge ruled Richard Branson must face a shareholder suit alleging he concealed safety problems with Virgin Galactic Holdings Inc.’s space program and sold hundreds of millions of dollars of shares.

While most of the claims in the suit were dismissed, US District Judge Allyne Ross in Brooklyn said the shareholders can proceed in trying to prove Virgin Galactic and its founder, Branson, defrauded them into overpaying shares of the space tourism company. They now trade at 90% below their peak in February 2021.

Ross ruled shareholders could proceed with their claim that Virgin made false ...