San Diego, CA -- (SBWIRE) -- 02/27/2012 -- The Shareholders Foundation announces that an investor in shares of Molycorp, Inc. (NYSE:MCP) filed a lawsuit against certain of officers and directors of Molycorp, Inc. over alleged breaches of fiduciary duties that allegedly exposed the mining company to hundreds of millions of dollars in liability and damages to its reputation.
Investors who are current long term investors in shares of Molycorp, Inc. (NYSE:MCP) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.comor call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges that the defendants made a number of improper statements that inflated Molycorp’s stock price and defendants embarked on a pump-and-dump scheme that would reap them, and those that control them, more than $1.5 billion in ill-gotten gains.
The lawsuit against certain directors and officers over alleged breaches of fiduciary duties follows a lawsuit filed against Molycorp itself for alleged Securities Laws violations. That lawsuit was filed for investors who only purchased Molycorp, Inc. (NYSE:MCP) common stock during the period between March 9, 2011 and November 10, 2011. The plaintiff in that lawsuit alleges that the defendants’ alleged false and misleading statements about the capability of Molycorp’s “Mountain Pass” mining operation and Molycorp’s earnings caused Molycorp common stock to trade at artificially inflated prices between March 9, 2011 and November 10, 2011.
On November 10, 2011, Molycorp, Inc reported its third quarter 2011 revenues and earnings results 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 plaintiff alleges that the results were below analysts’ estimates
Molycorp’s stock NYSE:MCP price fell, dropping from $38.70 per share on November 10, 2011 to $33.45 per share on November 11, 2011, or 13.6%.
NYSE:MCP traded in the end of December 2011 at slightly below $23.50 per share and closed on February 23, 2012, at $29.09 per share.
Those who are current long term investors in shares of Molycorp, Inc. (NYSE:MCP) have certain options and you should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego