Features

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

Written by David Schollaert

July 25, 2025

U.S. Steel and Nippon Steel are not done settling scores with those who opposed their historic, $14.9-billion partnership.

Both parties remain full-speed ahead in their lawsuit against Cleveland-Cliffs and the head of the United Steelworkers (USW) union for allegedly conspiring to block the merger, according to a report by Trib Total Media.

“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.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

Read more from David Schollaert

Latest in Features