(MP) Alert: Did You Lose Money on Your MP Materials Investment? Contact Johnson Fistel Regarding Investigation
SAN DIEGO- Newsfile—February 3, 2022
Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of the federal securities laws by MP Materials Corp. (“MP” or the “Company”) (NYSE: MP).
On February 3, 2022, Bonitas Research, a short seller, released a report alleging problems with MP. The allegations include that ” Since 2Q’21, evidence shows that Shenghe paid above market prices for MP concentrates which we think is part of an abusive transfer price manipulation scheme to artificially inflate MP’s reported 2021 profits. Investor interest increased in MP stock as MP’s gross profits benefitted while Shenghe’s segment gross profits plummeted in 2Q’21 & 3Q’21.”
Per Bonitas Research, ” Shenghe Resources Holdings Co., Ltd. (“Shenghe”) (CH: 600392) is a publicly traded Chinese state-owned rare earth metals refiner and producer who co-invested alongside JHL Capital Group LLC (“JHL”) and QVT Financial LP (“QVT”) (all three parties collectively “MP Insiders”) to buy the Mountain Pass mine out of bankruptcy in 2017. Shenghe is a MP related party, owns 8% of MP shares, and is MP’s ~100% customer who had rights to 100% of MP’s production and 100% of MP’s net income until Shenghe fully recouped its investment.”
Following this news, MP’s stock price fell over 10% in early morning trading on February 3, 2022.
If you have information that could assist in this investigation, including past employees and others, or an MP shareholder interested in learning more about the investigation, please contact Jim Baker (jimb@johnsonfistel.com) by email or phone at 619-814-4471. If emailing, please include a phone number.
To join this action, you can go to: https://www.cognitoforms.com/JohnsonFistel/MPMaterialsCorp or [Click here to join this action] There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
To join this action, you can go to: https://www.cognitoforms.com/JohnsonFistel/MPMaterialsCorp or [Click here to join this action] There is no cost or obligation to you.