SOURCE: Izard Nobel LLP

February 07, 2012 11:44 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Molycorp, Inc.

WEST HARTFORD, CT--(Marketwire - Feb 7, 2012) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Colorado on behalf of purchasers of the common stock of Molycorp, Inc. ("Molycorp" or the "Company") (NYSE: MCP) between March 9, 2011 and November 10, 2011, inclusive (the "Class Period").

The Complaint alleges that Molycorp and certain of its officers and directors violated the federal securities laws. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts during the Class Period: (i) 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 (ii) end users had been reducing demand for the Company's products as prices for rare earth elements increased.

On November 10, 2011, the Company 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. The Company's stock price fell from $38.70 per share on November 10, 2011 to $33.45 per share on November 11, 2011, or 13.6%.

If you are a member of the class, you may, no later than April 3, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/molycorp/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

Contact Information