Molycorp Inc (NYSE: MCP) Investor Securities Class Action Lawsuit 02/03/2012

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Company Name(s): 
Case Name: 
Molycorp Shareholder Class Action Lawsuit 02/03/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the District of Colorado
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 
Settlement Notice: 
Settlement Proof: 

The settlement includes all persons who purchased or otherwise acquired Molycorp Inc securities from February 7, 2011 through November 10, 2011, including all persons who purchased or acquired Molycorp Inc common stock and/or Molycorp 5.50% Series A Mandatory Convertible Preferred Stock pursuant to the February 2011 offering, and all persons who purchased or acquired Molycorp Inc common stock pursuant to the June 2011 offering.

June 16, 2017 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

March 6, 2017 - The court preliminarily approved the settlement.

October 27, 2016 - Parties filed a stipulation of settlement.

January 20, 2016 - The court granted in part and denied in part defendants' motions to dismiss.

March 31, 2015 - The court granted defendants' motion to dismiss and granted plaintiffs' leave to file an amended complaint.

October 22, 2012 - Defendants filed a motion to dismiss.

October 4, 2012 - Lead plaintiff filed a notice of voluntary dismissal of one defendant.

July 31, 2012 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Molycorp Inc common shares between February 11, 2011 and November 10, 2011. The plaintiff alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between February 11, 2011 and November 10, 2011.

May 29, 2012 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

April 3, 2012 - Lead plaintiff motions were filed.

February 3, 2012 - An investor in shares of Molycorp Inc (NYSE: MCP) filed a lawsuit in the U.S. District Court for the District of Colorado against Molycorp Inc over alleged violations of Federal Securities Laws in connection with its “Mountain Pass” mining operation and with certain allegedly false and misleading statements made between March 9, 2011 and November 10, 2011.

According to the complaint the plaintiff alleges on behalf of purchasers of Molycorp Inc (NYSE: MCP) common stock during the period between March 9, 2011 and November 10, 2011, that Molycorp Inc certain of its officers and directors violated the Securities Exchange Act of 1934.

Specifically, the plaintiff alleges that the defendants’ alleged false and misleading statements about the capability of Molycorp Inc’s “Mountain Pass” mining operation and Molycorp Inc’s earnings caused Molycorp Inc common stock to trade at artificially inflated prices between March 9, 2011 and November 10, 2011.

Molycorp Inc reported that its annual Revenue rose from $7.09 million in 2009 to $35.16 million in 2010, however its Net Loss increased from $28.59 million for ’09 to $49.09 million in 2010.

Shares of Molycorp Inc (NYSE: MCP) rose from roughly $12.30 in July 2010 to as high as $74.22 per share in April 2011.

Then 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 Inc’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%.

Molycorp Inc (NYSE: MCP) traded in the end of December 2011 at slightly below $23.50 per share and closed on February 3, 2012, at $29.77 per share.