BIRMINGHAM, Ala., Aug. 28, 2013 (GLOBE NEWSWIRE) -- Burke Harvey & Frankowski, LLC announces the commencement of an investigation into potential claims against the officers and directors of Molycorp, Inc. ("Molycorp" or the "Company") concerning breaches of their respective fiduciary duties to the Company. As described below, recent alleged acts of mismanagement by Molycorp officers and directors may have caused the Company to: (i) restate its previously announced financial statements and (ii) be named as a defendant in a class action lawsuit alleging violations of the Securities Exchange Act of 1934.
On August 8, 2013, the Company disclosed that its Board's Audit and Ethics Committee had determined that Molycorp's unaudited quarterly report on Form 10-Q for the three months ended March 31, 2013 should no longer be relied upon. The Company had misstated 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 million. Upon the news of the restatement, Molycorp securities declined 10% in a single day's trading. We are investigating whether the officers and directors of Molycorp breached their fiduciary duties owed to the Company and its shareholders by allowing or failing to prevent the Company from misstating its financial results.
What You Can Do
If you are a current Molycorp shareholder, you may have legal claims against the Company's officers and directors. If you wish to discuss this investigation or have questions about this notice or your legal rights, please contact attorney Richard Frankowski via email at rfrankowski@bhflegal.com or toll-free telephone at (888) 930-9091. There is no cost to you.
About Burke Harvey & Frankowski, LLC
Burke Harvey & Frankowski, LLC is a Birmingham, Alabama law firm that, among other things, dedicates its practice to the representation of shareholders and investors in litigation, including shareholder class actions, derivative litigation, and FINRA arbitrations. More information about the firm is available through its website at www.bhflegal.com and upon request from the firm. Burke Harvey & Frankowski, LLC has paid for the dissemination of this promotional communication and is responsible for its content.
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