Shareholder Rights Law Firm Johnson & Weaver, LLP announces that it is investigating whether certain officers and directors of Molycorp, Inc. (NYSE: MCP) engaged in a pump-and-dump scheme in breach of their fiduciary duties and in violation of United States securities laws.
Johnson & Weaver, LLP’s investigation focuses on whether certain officers and directors made false and misleading statements about the capability of the Company’s “Mountain Pass” mining operation and the Company’s earnings. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts during the Class Period: (a) Molycorp’s development and expansion of the Mountain Pass mine was not progressing on schedule and would not allow the Company to reach rare earth oxide production rates at the end of calendar years 2012 and 2013; and (b) end users had been reducing demand for the Company’s products as prices for rare earth elements increased. At the same time, certain Company insiders were selling their personal stock for proceeds of over $1.5 million while in possession of this material, non-public information.
On November 10, 2011, the Company reported disappointing third quarter 2011 revenues and earnings results below analysts’ estimates and announced a reduction in Mountain Pass production guidance for the fourth quarter of 2011 due to expected equipment downtime relating to Mountain Pass engineering and expansion issues. The Company’s stock price fell, dropping from $38.70 per share on November 10, 2011 to $33.45 per share on November 11, 2011, or 13.6%, on heavy trading volume.
Johnson & Weaver, LLP invites current Molycorp shareholders who are concerned about their legal rights and remedies to contact attorney Brett Weaver at (619) 230-0063 or firstname.lastname@example.org.Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
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