Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their MP Materials investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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 MP Materials securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220224006006/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
