| COMPANY |
United States Steel Corporation |
| COURT |
United States District Court for the Western District of Pennsylvania |
| CASE NUMBER |
17-cv-00579 |
| JUDGE |
The Hon. Cathy Bissoon |
| CLASS PERIOD |
January 27, 2016 - April 25, 2017 |
| SECURITY TYPE |
All Securities |
Case Background:
On May 3, 2017, the initial complaint in this securities class action was filed against United States Steel Corporation (“U.S. Steel” or the “Company”), and certain of U.S. Steel’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action brought on behalf of all persons who purchased or otherwise acquired U.S. Steel securities between January 27, 2016 and April 25, 2017, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding its outlook and expected financial performance. The complaint alleges that the true facts, which were known by Defendants but concealed from the investing public during the Class Period, were as follows: (1) while the Company was implementing its Carnegie Way program, it was focused on cutting costs and was not making investments necessary to position U.S. Steel so that it could respond to improved market conditions; (2) Defendants' failure to invest in improving capital assets during the industry downturn, in order to report apparent financial improvements, meant that U.S. Steel had higher production costs than its competitors, even in the face of improved pricing, which would negatively impact its financial results; (3) Defendants were forestalling expensive capital equipment upgrades in order to boost the Company's short-term financial results at the expense of long-term financial performance, leaving U.S. Steel in need of accelerated, costly equipment upgrades that would leave the Company years away from generating improved financial performance; and (4) as a result of the foregoing, Defendants' statements regarding the Company's outlook and expected financial performance were false and misleading and lacked a reasonable basis when made. The complaint alleges that as a result of Defendants' false statements and material omissions, U.S. Steel stock traded at artificially inflated prices during the Class Period, and that after the truth was revealed to the market, the price of U.S. Steel stock declined significantly as the artificial inflation was removed.
Current Status of Case:
On April 19, 2019, Lead Plaintiffs filed a Motion for Class Certification. On December 31, 2019, the Court issued an Order granting the Motion for Class Certification. On May 20, 2022, Lead Plaintiffs filed a Motion for Preliminary Approval of Settlement. On March 21, 2023, the Court approved the Settlement of the action. This action has concluded.
The deadline to file a claim is March 1, 2023. You may find additional information regarding the terms of the settlement and claim filing process at http://ussteellitigation.com/ or by calling the claims administrator, A.B. Data, Ltd., at (877) 868-2084.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.