Molycorp obtains dismissal of securities class action alleging false financial statements and fraudulent misrepresentations concerning mine modernization project
Clients Molycorp, Inc.
Jones Day represented former and current officers and directors of Molycorp, Inc., a rare earth element company, in a securities class action alleging defendants violated the Securities Exchange Act of 1934. Plaintiffs alleged defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making material misstatements and omissions regarding Molycorp's effort to modernize one of its mines, its financial statements, and its progress in developing a new water filtration product for consumer use.
On March 12, 2015, the Southern District of New York (Hon. Paul A. Crotty) granted defendants' motion to dismiss plaintiffs' claims with prejudice. The court held that plaintiffs had insufficiently pled scienter with respect to the statements regarding the mine project and the financial statements, and that statements regarding the water filtration product were protected forward-looking statements.
In re Molycorp, Inc. Securities Litigation, Case No. 13-cv-5697 (S.D.N.Y.)