LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired MP Materials Corp. (“MP Materials” or the “Company”) f/k/a Fortress Value Acquisition Corp. (“FVAC”) (NYSE: MP) securities between May 1, 2020 and February 2, 2022, inclusive (the “Class Period”). MP Materials investors have until April 25, 2022 to file a lead plaintiff motion.
If you suffered a loss on your MP Materials investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/mp-materials-corp/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
In November 2020, FVAC consummated a business combination with MP Mine Operations LLC and Secure Natural Resources LLC (together, “Legacy MP Materials”), and the combined entity was renamed MP Materials.
On February 3, 2022, Bonitas Research published a report alleging that MP Materials executed an “abusive transfer price manipulation scheme” with Shenghe Resources Holding Co., Ltd. (“Shenghe”), a related party. Specifically, the report alleged that Shenghe had overpaid for MP Materials concentrates to artificially inflate profits, which coincided with the lock-up expiration, allowing MP Materials insiders to sell stock at artificially inflated prices. The report also cited an academic study which concluded that MP Materials’ ore at Mountain Pass is “not economically viable to harvest for rare earth metals while 12 of the other 13 well known rare earth mines outside of China are economically feasible” at current market prices.
On this news, MP Materials’ stock fell $5.61, or 14.3%, to close at $33.75 per share on February 3, 2022, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) FVAC had overstated its due diligence efforts and expertise with respect to identifying target companies to acquire; (2) FVAC performed inadequate due diligence into Legacy MP Materials prior to the Business Combination, or else ignored significant red flags regarding, among other things, Legacy MP Materials’ management, compliance policies, and Mountain Pass’s profitability; (3) as a result, the Company’s future business and financial prospects post-Business Combination were overstated; (4) MP Materials engaged in an abusive transfer price manipulation scheme with a related party in the People’s Republic of China to artificially inflate the Company’s profits; (5) MP Materials’ ore at Mountain Pass was not economically viable to harvest for rare earth metals; and (6) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired MP Materials securities during the Class Period, you may move the Court no later than April 25, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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