Johnson & Weaver, LLP Files Class Action Suit against United States Steel Corporation
SAN DIEGO—(PRNewswire)—May 3, 2017
Shareholder rights law firm Johnson & Weaver, LLP announced today that a class action has been commenced in the United States District Court for the Western District of Pennsylvania on behalf of all purchasers of United States Steel Corporation (NYSE: X) (“U.S. Steel” or “Company”) common stock during the period between November 1, 2016 and April 25, 2017, inclusive (the “Class Period”). Defendants are United States Steel Corporation, Mario Longhi, and David B. Burritt.
If you wish to serve as a lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.johnsonfistel.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint alleges that during the Class Period, U.S. Steel 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: (a) 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; (b) 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; (c) 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 (d) 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 above revelations were revealed to the market, the price of U.S. Steel stock declined significantly as the artificial inflation was removed.
Plaintiff seeks to recover damages on behalf of all purchasers of U.S. Steel’s common stock during the Class Period.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.