LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming April 25, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who 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”).
If you are a shareholder who suffered a loss, click here to participate.
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.
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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 request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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