Press release from PR Newswire
Molycorp Shareholder Investigation -- The Briscoe Law Firm and Powers Taylor, LLP Announce Investigation of Possible Breaches of Fiduciary Duty by the Officers and Directors of Molycorp, Inc.
Thursday, February 09, 2012
Molycorp Shareholder Investigation -- The Briscoe Law Firm and Powers Taylor, LLP Announce Investigation of Possible Breaches of Fiduciary Duty by the Officers and Directors of Molycorp, Inc.10:47 EST Thursday, February 09, 2012DALLAS, Feb. 9, 2012 /PRNewswire/ -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Molycorp, Inc. ("Molycorp" or "MCP") (NYSE: MCP) related to potential securities violations between March 9, 2011, and November 10, 2011 (the "Class Period"). (Logo: http://photos.prnewswire.com/prnh/20111111/DA05320LOGO)"Recent revelations about the company's alleged misrepresentations about end user demand for Molycorp products and problems with Molycorp's Mountain Pass mine have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by Molycorp's officers and directors. Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of Molycorp stock for all shareholders, including seeking removal of certain officers and directors and monetary payments," said shareholder rights attorney Willie Briscoe.If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at email@example.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.In a recently filed federal class action complaint, Molycorp and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the Class Period, defendants misrepresented or failed to disclose the following adverse facts: (a) Molycorp's development and expansion of the Mountain Pass mine was not progressing on schedule and would not allow the company to reach rare earth oxide production rates at the end of calendar 2012 and 2013; and (b) end users had been reducing demand for Molycorp's products as prices for rare earth elements increased. On November 10, 2011, Molycorp reported disappointing third quarter 2011 revenues and earnings results below analysts' estimates 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. Molycorp's stock price fell, dropping 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. The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters. Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.SOURCE Powers Taylor, LLP