SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of MP Materials Corp. f/k/a Fortress Value Acquisition Corp. (NYSE: MP) securities between May 1, 2020 and February 2, 2022, inclusive (the “Class Period”) have until April 25, 2022 to seek appointment as lead plaintiff in Bernstein v. MP Materials Corp. f/k/a Fortress Value Acquisition Corp., No. 22-cv-00315 (D. Nev.). Commenced on February 22, 2022, the MP Materials class action lawsuit charges MP Materials as well as certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the MP Materials class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the MP Materials class action lawsuit must be filed with the court no later than April 25, 2022.
CASE ALLEGATIONS: MP Materials engages in the ownership and operation of integrated rare earth mining and processing facilities. MP Materials was previously known as Fortress Value Acquisition Corp. (“FVAC”) and operated as a special purpose acquisition company (“SPAC” or blank-check company). In November 2020, FVAC consummated a merger with MP Mine Operations LLC and Secure Natural Resources LLC (collectively, “Legacy MP Materials”), whereby, among other things, Legacy MP Materials became an indirect wholly-owned subsidiary of FVAC, and FVAC changed its name from Fortress Value Acquisition Corp. to MP Materials Corp. As a result of the business combination, MP Materials began to own and operate the Mountain Pass Rare Earth Mine and Processing Facility (“Mountain Pass”) in California.
The MP Materials class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) FVAC had overstated its due diligence efforts and expertise with respect to identifying target companies to acquire; (ii) 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’ profitability; (iii) as a result, MP Materials’ future business and financial prospects post-business combination were overstated; (iv) MP Materials engaged in an abusive transfer price manipulation scheme with a related party in the People’s Republic of China to artificially inflate MP Materials’ profits; (v) MP Materials’ ore at Mountain Pass was not economically viable to harvest for rare earth metals; and (vi) thus, MP Materials’ public statements were materially false and misleading at all relevant times.
On February 3, 2022, Bonitas Research published a report accusing MP Materials of executing an “abusive transfer price manipulation scheme” with a related party in China, Shenghe Resources Holding Co., Ltd. (“Shenghe”), which owned 7.7% of MP Materials as of March 22, 2021. Specifically, the report alleged that, since the second quarter of 2021, MP Materials and Shenghe “executed an abusive transfer price manipulation scheme whereby Shenghe overpaid for MP [Materials] concentrates to artificially inflate MP [Materials’] profits, [which] conveniently coincided with the SPAC insider lock-up expiration so that MP [Materials] Insiders could sell MP [Materials] stock at artificially inflated prices.” In addition, the report cited a September 2019 German academic study that concluded 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 price fell by more than 14%, damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased MP Materials securities during the Class Period to seek appointment as lead plaintiff in the MP Materials class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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