(Bloomberg) — Chamath Palihapitiya took advantage of his insider role as chairman of Virgin Galactic Holdings Inc. to sell 10 million shares of the struggling space travel company for $315 million before he abruptly quit the board last month, a shareholder alleged in a lawsuit.
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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.
Read More: Virgin Galactic Chairman Palihapitiya Steps Down From Board
Virgin Galactic has worked to commercialize space flight since 2004, receiving…
