RADNOR, Pa., Feb. 26, 2022 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against MP Materials Corp. (“MP Materials”) (NYSE: MP) f/k/a Fortress Value Acquisition Corp. (“FVAC”) (NYSE: FVAC; FVAC WS; FVAC.U). The action charges MP Materials with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of MP Materials’ materially misleading statements to the public, MP Materials’ investors have suffered significant losses.
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
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LEAD PLAINTIFF DEADLINE: APRIL 25, 2022
CLASS PERIOD: MAY 1, 2020 THROUGH FEBRUARY 2, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. at (484) 270-1453 or via email at [email protected]
MP MATERIALS’ ALLEGED MISCONDUCT
MP Materials engages in the ownership and operation of integrated rare earth mining and processing facilities. FVAC operated as a special purpose acquisition company (“SPAC”). In November 2020, FVAC consummated a merger and changed its name to “MP Materials Corp.”
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 People’s Republic of China (“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.
Following this news, MP Materials’ stock price fell $5.61 per share, or 14.25%, to close at $33.75 per share on February 3, 2022.
WHAT CAN I DO?
MP Materials’ investors may, no later than April 25, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages MP Materials’ investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP