Press release from PR Newswire
Faruqi & Faruqi, LLP Announces Investigation of Molycorp, Inc.
Monday, February 06, 2012
Faruqi & Faruqi, LLP Announces Investigation of Molycorp, Inc.19:00 EST Monday, February 06, 2012NEW YORK, Feb. 6, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Molycorp, Inc. ("Molycorp" or the "Company") (NYSE: MCP). (Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Molycorp's efforts to expand the Company's Mountain Pass mine were behind schedule; (2) the Company would fail to reach projected rare earth oxide production rates by the end of calendar year 2012 or 2013; and (3) end-user customers have been reducing their demand for Molycorp's products as prices for rare earth elements have increased.On November 10, 2011, the Company reported disappointing third quarter 2011 revenues and earnings results below analysts' estimates. Moreover, Molycorp announced a reduction in Mountain Pass production guidance for the fourth quarter of 2011 due to expected equipment downtime relating to the site's engineering and expansion issues. In response to this disappointing news, Molycorp's stock price dropped from $38.70 per share on November 10, 2011 to $33.45 per share on November 11, 2011, or 13.6%, on heavy trading volume.Request more information now by clicking here: www.faruqilaw.com/MCPTake ActionIf you purchased Molycorp securities between March 9, 2011 and November 10, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/MCP. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Molycorp's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.FARUQI & FARUQI, LLP369 Lexington Avenue, 10th FloorNew York, NY 10017Attn: Richard Gonnello, Esq.firstname.lastname@example.orgFrancis McConville, Esq.email@example.comTelephone: (877) 247-4292 or (212) 983-9330SOURCE Faruqi & Faruqi, LLP