We are investigating whether MP Materials Corp. (NYSE:MP) (“MP”) has violated federal securities laws. If you suffered losses as a result of today’s drop in the price of MP, and have questions about your legal rights, please contact us using the form below to discuss your options at no charge.
Why is there an investigation?
On February 3, 2022, Bonitas Research published a report alleging MP of an abusive transfer price manipulation scheme with a related party that owns 8% of MP’s shares. The report alleges that the related party “overpaid for MP concentrates to artificially inflate MP’s profits. The 2021 scheme conveniently coincided with the SPAC insider lock-up expiration so that MP Insiders could sell MP stock at artificially inflated prices.”
As a result of the scheme, the report claims, MP’s profits soared, and MP insiders sold US$ 400+ million worth of MP stock in 2021.
On this disclosure, MP Materials’ share price dropped nearly 9% as of 10:25 AM.