Molycorp obtains dismissal of securities class action alleging fraudulent misrepresentations concerning amount of heavy rare earths present in Mountain Pass mine
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 Act of 1933 and the Securities Exchange Act. Plaintiffs alleged defendants violated Sections 11, 12(a) and 15 of the Securities Act of 1933 and Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 by making materially false and misleading statements concerning the quality and amount of "heavy" rare earths present in Molycorp's Mountain Pass mine and insider trading.
On March 31, 2015, the District of Colorado court (Hon. Raymond P. Moore) issued a 68-page opinion granting defendants' motion to dismiss all of plaintiffs' claims. The court held that plaintiffs had failed to sufficiently plead any misrepresentations or omissions concerning the Mountain Pass mine, and failed to plead scienter as to any defendant. The court also held that certain statements were protected as forward-looking under the Private Securities Litigation Reform Act of 1995.
In re Molycorp, Inc. Securities Litigation, Case No. 12-cv-292-WJM-KMT (D. Colo.)