MP MATERIALS SHAREHOLDER ALERT: Investors Of MP Materials With Losses Greater Than $50,000 Encouraged To Contact Kehoe Law Firm, P.C. – Securities Class Action Investigation
Kehoe Law Firm, P.C. is investigating potential securities class action claims on behalf of investors of MP Materials Corp. (“MP Materials” or the “Company”) (NYSE: MP) to determine whether MP Materials engaged in securities fraud or other unlawful business practices.
Grizzly Research (“Grizzly”) recently published a research report which, among other things, stated that “[t]he [C]ompany was able to sell itself to investors touting the fact that MP [Materials] is the biggest rare earth producer in the western world, and the only feasible competitor to Chinese producers.”
“In reality, [Grizzly] believe[s] that this is nothing more than a smoke and mirrors show. [Grizzly] found that Shenghe, a related party that accounts for 99% of MP’s revenue, and a signicant shareholder, can be traced back to the Chinese central government.”
Grizzly also reported that “MP is the second iteration of the same mining venture (Molycorp) that previously ended in bankruptcy. However, Chamath and his friends were able to bring MP public again at a 300x valuation increase in only three years without significant business improvements.”
Grizzly reported that “MP’s mine generates nowhere near the economic essence needed to support the current valuation due to the fact that MP mostly mines less valuable rare earth, namely Cerium and Lanthanum. It does not participate in the favorable trend in rare earth prices the same way competitors do[,]” and “[t]he projections that MP puts forth seem completely unattainable, and the company needs to incur capital expenditures that might lead it back into bankruptcy.”
On this news, the stock of MP Materials dropped significantly, thereby injuring investors of MP Materials.
MP MATERIALS INVESTORS WHO HAVE SUFFERED LOSSES GREATER THAN $50,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT EITHER JOHN KEHOE, ESQ., (215) 792-6676, EXT. 801, [email protected], OR MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO DISCUSS THE CLASS ACTION INVESTIGATION OR POTENTIAL LEGAL CLAIMS.