Molycorp Inc (NYSE: MCP) Investor Securities Class Action Lawsuit 08/14/2013

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Company Name(s): 
Case Name: 
Molycorp Shareholder Class Action Lawsuit 08/14/2013
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 Southern District of New York
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 
Settlement Notice: 
Settlement Proof: 

May 15, 2017 - The court approved the settlement, the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

January 18, 2017 - The court preliminarily approved the settlement.

November 18, 2016 - Parties filed a stipulation of settlement.

March 12, 2015 - The court granted the defendants' motion to dismiss and ordered the case closed.

August 13, 2014 - The defendants filed a motion to dismiss.

May 19, 2014 - The lead plaintiff filed an amended consolidated complaint.

April 2, 2014 - The lead plaintiff and lead counsel were appointed.

October 15, 2013 - Lead plaintiff motions were filed.

August 14, 2013 - An investor in shares of Molycorp Inc (NYSE: MCP) filed a lawsuit in the U.S. District Court for the Southern District of New York against Molycorp Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between August 2, 2012 and August 7, 2013.

According to the complaint the plaintiff alleges on behalf of purchasers Molycorp Inc (NYSE: MCP) common stock during the period between August 2, 2012 and August 7, 2013, that Molycorp Inc and certain of its officers violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff alleges that defendants made false and/or misleading statements and/or failed to disclose that Molycorp Inc’s reported inventory was materially understated, that Molycorp Inc overstated its income tax benefit in the first quarter of 2013 by approximately $6.5 million, that Molycorp Inc lacked adequate internal and financial controls, and that as a result of the foregoing, Molycorp Inc’s statements were materially false and misleading at all relevant times.

Molycorp Inc (NYSE: MCP) reported that its annual Total Revenue increased from $396.83 million in 2011 to $528.91 million in 2012, while its Net Income of $117.53 million in 2011 declined to a Net Loss of $449.55 million in 2012.

Shares of Molycorp Inc (NYSE: MCP) declined from as high as $74.22 per share in April 2011 to as low as $4.88 per share in April 2013.

On August 8, 2013 Molycorp Inc reported its second quarter 2013 results. Among other things, Molycorp Inc reported that its quarterly Total Revenue declined from $146.37 million in the first quarter 2013 to $136.86 million in the second quarter 2013 and that its Net Loss increased from $47.22 million in the first quarter 2013 to $71.17 million in the second quarter 2013.

Shares of Molycorp Inc (NYSE: MCP) closed on August 14, 2013 at $6.75 per share, which is less than half its 52 week High of $14.44 per share.