NEW YORK--(BUSINESS WIRE)--The Law Offices of Kenneth A. Elan announces today that it commenced a lawsuit against Molycorp, Inc. (“Molycorp” or the “Company”) (NYSE:MCP) pursuing claims in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Molycorp securities from August 2, 2012 through August 7, 2013 (the “Class Period”).
Molycorp is one of the leading manufacturers of custom engineered rare earth and rare metal products. The Company produces and sells rare earth and rare metal materials in the United States and internationally.
On August 8, 2013, the Company disclosed that the Audit and Ethics Committee of the Company's Board of Directors determined that its unaudited Condensed Consolidated Financial Statements for the three months ended March 31, 2013 should no longer be relied upon because they contained an error with respect to the reconciliation of its physical inventory to the general ledger, which resulted in a cumulative overstatement of costs of sales and understatement of current inventory of approximately $16.0 million. This error also caused the income tax benefit in the first quarter of 2013 to be overstated by approximately $6.5 million, the disclosure of the consolidated assessment of normal production levels to be understated by approximately $17.4 million, and the consolidated total write-down of inventory to be overstated by $18.0 million.
On this news, shares fell $0.71, approximately 9.72%, to close at $6.69 per share on August 9, 2013.
If you acquired Molycorp securities during the Class Period, you may, no later than October 14, 2013, request that the court appoint you lead plaintiff of the proposed class. 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 that could affect the overall recovery for class members, including decisions concerning settlement. If you have any questions about this matter, and any rights you might have with respect to these claims, contact Kenneth Elan at email@example.com or by telephone at (212) 619-0261.