PHILADELPHIA, Feb. 6, 2012 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. filed a class action lawsuit in the United States District Court, District of Colorado, 12cv00292, before Judge William J. Martinez, on behalf of all persons who purchased or otherwise acquired the common stock of Molycorp. Inc. (NYSE:MCP) between March 9, 2011 and November 10, 2011, against the Company, Mark A. Smith and James S. Allen for violation of the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than April 3, 2012. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or any questions concerning this notice, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. A copy of the complaint can be viewed at www.bernardmgross.com. Molycorp is a rare earth element mining company with its principal offices located in Greenwood Village, CO. The complaint alleges that throughout the class period, defendants failed to disclose that 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; that End users had been reducing demand for the Company's products as prices for rare earth elements increased; and that the lack of progress in development and expansion of the Mountain Pass mine made it difficult, if not impossible, for the Company to produce and deliver certain magnet products to its key customers. On September 20, 2011, a J.P. Morgan securities analyst cut the target price of Molycorp by half, as there was less demand for the Company's rare earth elements. In response, the value of the Company's stock price plummeted from a September 19, 2011 closing price of $53.01 to a low of $41.33 on September 20, 2011, representing a 22% decrease on heavy trading volume.
Then, on November 11, 2011, the Company reported disappointing third quarter 2011 earnings results below analysts' estimates and announced a reduction in production at Mountain Pass. The Company's stock price plummeted again, 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.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Any questions, Please Contact:
Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esquire
Deborah R. Gross, Esquire
Telephone: 866-561-3600 (toll free)
E-mail: susang@bernardmgross.com or debbie@bernardmgross.com.
Website: http://www.bernardmgross.com