SAN DIEGO, CA--(Marketwire -03/12/12)- The Shareholders Foundation, Inc. announces that an investor in Molycorp, Inc. (MCP) shares filed a lawsuit in Federal Court against certain directors of Molycorp alleging they breached their fiduciary duties that allegedly exposed the mining company to hundreds of millions of dollars in liability and damages to its reputation.
If you are a current long term investor in shares of Molycorp, Inc. (MCP) shares, you have certain options and should contact the Shareholders Foundation by e-mail at firstname.lastname@example.org or call +1 (858) 779-1554.
The plaintiff alleges that the defendants made a number of improper statements that inflated Molycorp's stock price and defendants embarked on a pump-and-dump scheme that would reap them, and those that control them, more than $1.5 billion in ill-gotten gains.
The plaintiff says that in February 2011, approximately six months after Molycorp went public, the lock-up that prevented insiders from selling their significant holdings expired. Shares of Molycorp rose from $44.63 in February to $73.30 in April 2011.
The plaintiff claims that the defendants' pump-and-dump scheme began to crumble on November 10, 2011, when Molycorp reported disappointing third quarter 2011 revenues, earnings results below analysts' estimates, and also announced a reduction in Mountain Pass mine production guidance for the fourth quarter of 2011.
Molycorp's stock market capitalization fell $3.5 billion, or 56%, from its high of $6.3 billion in May and its stock price fell from over $70 in April to $33.45 per share in November, respectively slightly below $23.50 in the end of December 2011.
Those who are current long term investors in shares of Molycorp, Inc. (MCP) have certain options and should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.