The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of MP Materials Corp. f/k/a Fortress Value Acquisition Corp. (MP) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired MP Materials Corp. (“MP Materials” or the “Company”) f/k/a Fortress Value Acquisition Corp. (“FVAC”) (NYSE: MP) securities between May 1, 2020 and February 2, 2022, inclusive (the “Class Period”). MP Materials investors have until April 25, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In November 2020, FVAC consummated a business combination with MP Mine Operations LLC and Secure Natural Resources LLC (together, “Legacy MP Materials”), and the combined entity was renamed MP Materials.

On February 3, 2022, Bonitas Research published a report alleging that MP Materials executed an “abusive transfer price manipulation scheme” with Shenghe Resources Holding Co., Ltd. (“Shenghe”), a related party. Specifically, the report alleged that Shenghe had overpaid for MP Materials concentrates to artificially inflate profits, which coincided with the lock-up expiration, allowing MP Materials insiders to sell stock at artificially inflated prices. The report also cited an academic study which concluded that 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, MP Materials’ stock fell $5.61, or 14.3%, to close at $33.75 per share on February 3, 2022, thereby injuring investors.

The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) FVAC had overstated its due diligence efforts and expertise with respect to identifying target companies to acquire; (2) FVAC performed inadequate due diligence into Legacy MP Materials prior to the Business Combination, or else ignored significant red flags regarding, among other things, Legacy MP Materials’ management, compliance policies, and Mountain Pass’s profitability; (3) as a result, the Company’s future business and financial prospects post-Business Combination were overstated; (4) 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; (5) MP Materials’ ore at Mountain Pass was not economically viable to harvest for rare earth metals; and (6) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.

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If you purchased MP Materials securities during the Class Period, you may move the Court no later than April 25, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased MP Materials securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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