According to a press release dated February 3, 2012, the complaint charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that defendants’ false and misleading statements about the capability of the Company’s “Mountain Pass” mining operation and the Company’s earnings caused its common stock to trade at artificially inflated prices throughout the Class Period. Specifically, the plaintiffs claims the defendants misrepresented and/or failed to disclose the following adverse facts during the Class Period: (a) the Company’s development and expansion of the Mountain Pass mine was not progressing on schedule and would not allow the Company to reach rare earth oxide production rates at the end of calendar 2012 and 2013; and (b) end users had been reducing demand for the Company’s products as prices for rare earth elements increased.
On November 10, 2011, the Company reported disappointing third quarter 2011 revenues and earnings results below analysts’ estimates and announced a reduction in Mountain Pass production guidance for the fourth quarter of 2011 due to expected equipment downtime relating to Mountain Pass engineering and expansion issues. The Company’s stock price fell, dropping from $38.70 per share on November 10, 2011 to $33.45 per share on November 11, 2011, or 13.6%, on heavy trading volume.
On May 29, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On July 31, 2012, plaintiffs filed their consolidated complaint.
On October 4, 2012, plaintiffs filed Notice of voluntary dismissal of a certain defendant.
An amended and consolidated complaint was filed on May 29, 2015.
On October 27, 2016, the parties filed a Stipulation of Settlement.
On March 6, 2017, the Court preliminarily approved the Settlement. On June 16, the Court approved the plan of allocation, awarded attorneys' fees and expenses, and entered Final Judgment.