Class Action Alert: Robbins LLP Reminds Shareholders of Class Action Against MP Materials Corp. (MP) f/k/a Fortress Value Acquisition Corp. (FVAC)

SAN DIEGO, CA / ACCESSWIRE / February 25, 2022 / The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired MP Materials MP securities between May 1, 2020 and February 2, 2022. MP Materials engages in the ownership and operation of integrated rare earth mining and processing facilities.

If you would like more information about our investigation of MP Materials Corp.'s misconduct, click here.

What is this Case About: MP Materials Corp. (MP) Overstated its Business Prospects in Connection with its Acquisition by Fortress Value Acquisition Corp.

According to the complaint, in November 2020, FVAC combined with MP Mine Operations LLP and Secure Natural Resources LLC and changed its name to MP Materials Corp. As a result of the business combination, the Company began to own and operate the Mountain Pass Rare Earth Mines and Processing Facility. Throughout the class period, defendants purportedly failed to disclose that: (i) FVAC had overstated its due diligence efforts and expertise with respect to identifying target companies to acquire; (ii) FVAC performed inadequate due diligence into Legacy MP Materials prior to the business combination, or ignored significant red flags, such as Legacy MP Materials' management, compliance policies, and Mountain Pass's profitability; (iii) as a result, the Company's future business and financial prospects post-business combination were overstated; (iv) MP Materials engaged in an abusive transfer price manipulation scheme with a related party in the People's Republic of China to artificially inflate the Company's profits; and (v) MP Materials' ore at Mountain Pass was not economically viable to harvest for rare earth metals.

On February 3, 2022, Bonitas Research published a report accusing MP Materials of executing an "abusive transfer price manipulation scheme" with a related party in China, Shenghe Resources Holding Co., Ltd., which owned 7.7% of the Company as of March 22, 2021. The report also cited a September 2019 German academic study that concluded MP Materials' ore at Mountain Pass "is not economically viable to harvest for rare earth metals while 12 of the other 13 well known rare earth mines outside of China are economically feasible" at current market prices. On this news, the Company's stock price fell $5.61 per share, or over 14%, to close at $33.75 per share on February 3, 2022.

Next Steps: If you acquired shares of MP Materials Corp. (MP) between May 1, 2020 and February 2, 2022, you have until April 25, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against MP Materials Corp. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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SOURCE: Robbins LLP