USS, Nippon continue to press lawsuit against Cliffs, USW chief

“We are pleased that the court has allowed this action to proceed as we seek to recover our damages as result of the illegal conduct of the defendants,” U.S. Steel said in a statement to SMU on Friday.

Recall that U.S. Steel rejected a $35-per-share unsolicited offer from Cliffs in August 2023. The Pittsburgh-based steelmaker accepted Nippon Steel’s significantly higher ($55/share) all‑cash bid in December 2023. But the merger didn’t officially close until June 18.

The deal became a political issue and a focus of litigation, including two separate lawsuits filed by Nippon Steel and U.S. Steel in January. One alleged political interference and took aim at the Biden administration as well as the Committee on Foreign Investment in the United States (CFIUS) after they blocked the deal.

U.S. Steel and Nippon steel also filed a lawsuit in federal court in Pittsburgh in March. It accused Cliffs and USW leadership of conspiring to block the merger.

US District Judge Marilyn Horan, during a status conference on Wednesday, said certain issues in that lawsuit were no longer relevant because the merger had been completed. But she gave U.S. Steel and Nippon Steel 45 days to amend their complaint to address potential damages stemming from the allegedly anticompetitive conspiracy by Cliffs and USW leadership.

Spokespersons for Cliffs and the USW did not return requests for comment by the time of publication on Friday evening. Cliffs maintains the claims are moot and should be dismissed, according to the Trib.