Kirby McInerney LLP announced today that it has filed a lawsuit against Molycorp, Inc. (“Molycorp” or the “Company”) (NYSE:MCP) pursuing claims in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Molycorp securities from August 2, 2012 through August 7, 2013 (the “Class Period”).
Molycorp is one of the leading manufacturers of custom engineered rare earth and rare metal products. The Company produces and sells rare earth and rare metal materials in the United States and internationally.
On August 8, 2013, the Company disclosed that the Audit and Ethics Committee of the Company's Board of Directors determined that its unaudited Condensed Consolidated Financial Statements for the three months ended March 31, 2013 should no longer be relied upon because they contained an error with respect to the reconciliation of its physical inventory to the general ledger, which resulted in a cumulative overstatement of costs of sales and understatement of current inventory of approximately $16.0 million. This error also caused the income tax benefit in the first quarter of 2013 to be overstated by approximately $6.5 million, the disclosure of the consolidated assessment of normal production levels to be understated by approximately $17.4 million, and the consolidated total write-down of inventory to be overstated by $18.0 million.
On this news, shares fell $0.71, approximately 9.72%, to close at $6.69 per share on August 9, 2013.If you acquired Molycorp securities during the Class Period, you may, no later than October 14, 2013, request that the court appoint you lead plaintiff of the proposed class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement. If you have any questions about this matter, and any rights you might have with respect to these claims, contact Meghan Summers at firstname.lastname@example.org or Jess Kelley at email@example.com, by telephone at (212) 371-6600, or by filling out this form. Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, whistleblower, antitrust and consumer litigation. The firm has specialized in complex litigation, including securities class actions, for several decades. Kirby McInerney LLP has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm’s achievements and quality of service have been chronicled in numerous published decisions. Additional information about the firm or the claims against Molycorp can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.