NEW YORK, March 16, 2022 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against MP Materials Corp. f/k/a Fortress Value Acquisition Corp. (“MP Materials” or the “Company”) (NYSE: MP; FVAC; FVAC WS; FVAC.U) and certain of its officers. The class action, filed in United States District Court of the District of Nevadaand registered under number 22-cv-00315, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired MP Materials securities between May 1, 2020 and February 2, 2022both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a). ) of the Securities Exchange Act of 1934 (the “Exchange Act”) and rule 10b-5 promulgated thereunder, against the Company and certain of its principal officers.
If you are a shareholder who purchased or otherwise acquired securities of MP Materials during the Class Period, you have until April 25, 2022 ask the court to name you as the lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those applying by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
MP Materials engages in the ownership and operation of integrated rare earth mining and processing facilities. The company was previously known as “Fortress Value Acquisition Corp.” (“FVAC”) and operated as a special purpose acquisition company (“SPAC”).
In November 2020, FVAC completed a merger with MP Mine Operations LLC (“MPMO”) and Secure Natural Resources LLC (“SNR” and, collectively with MPMO, “Legacy MP Materials”), whereby, among other things, Legacy MP Materials became a wholly-owned indirect subsidiary – subsidiary of FVAC, and FVAC changed its name from “Fortress Value Acquisition Corp.” to “MP Materials Corp.” (the “Business Combination”). Following the business combination, the Company began owning and operating the Mountain Pass rare earth mine and processing facility (“Mountain Pass”) in California.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) FVAC overstated its due diligence efforts and expertise in identifying target companies to acquire; (ii) FVAC performed inadequate due diligence in the Legacy MP materials prior to the business combination, or ignored important red flags regarding, among others, management of Legacy MP Materials, compliance policies and profitability of Mountain Pass; (iii) as a result, the future business and financial prospects of the Company after the Business Combination have been overestimated; (iv) MP Materials engaged in an abusive transfer pricing scheme with a related party in the People’s Republic of China (“China“) to artificially inflate the company’s profits; (v) MP Materials’ ore at Mountain Pass was not economically viable to mine for rare earth metals; and (vi) as a result, the company’s public statements were materially false and misleading in all material respects.
At February 3, 2022Bonitas Research released a report (the “Bonitas Report”) accusing MP Materials of having executed an “abusive transfer pricing manipulation scheme” with a related party in ChinaShenghe Resources Holding Co., Ltd. (“Shenghe”), which held 7.7% of the Company at March 222021. Specifically, the Bonitas report alleged that, since the second quarter of 2021, MP Materials and Shenghe “executed an abusive transfer pricing manipulation scheme whereby Shenghe overpaid MP [Materials] concentrates for artificially swelling MP [Materials’] profits, [which] conveniently coincided with the expiration of the SPAC insider lockout so that MP [Materials] insiders could sell MP [Materials] stock at artificially inflated prices.” In addition, the Bonitas report cited a September 2019 German academic study that concluded MP [Materials’] Mountain Pass ore is “not economically viable to harvest for rare earth metals while 12 of 13 other well-known rare earth mines outside of China are economically feasible” at current market prices.
At this news, the MP Materials share price fell $5.61 per share, or 14.25%, to close at $33.75 per share on February 3, 2022on an unusually high trading volume of 12,371,789 shares.
Pomerantz LLP, with offices in new York, Chicago, Los Angeles, Parisand Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP