RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased United States Steel Corporation (NYSE: X) (“U.S. Steel” or the “Company”) on behalf of purchasers of the Company’s securities between November 1, 2016 and April 25, 2017, inclusive (the “Class Period”).
U.S. Steel shareholders may, no later than July 3, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of U.S. Steel and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com/case/x.
U.S. Steel is an integrated steel producer of flat-rolled and tubular products, with major production operations in North America and Europe. The shareholder class action complaint alleges that U.S. Steel and certain of its senior executive officers made materially false and misleading statements to investors about the Company’s outlook and expected financial performance during the Class Period.
According to the complaint, during Fiscal 2016 U.S. Steel represented to investors that it was transforming the Company through “two phases of a focused execution on our stockholder value creation strategy.” Additionally, during the Class Period U.S. Steel and certain senior executive officers made a series of positive statements to investors about the Company’s ability to benefit from improving market conditions. For example, on January 31, 2017, U.S. Steel’s Chief Executive Officer (“CEO”) stated that the Company was “starting 2017 with much better market conditions” than it faced at the beginning of 2016, and that U.S. Steel “will benefit from improved market conditions.”
Then, on April 25, 2017, U.S. Steel announced disappointing First Quarter Fiscal 2017 financial and operational results – despite improved market conditions. Specifically, the Company reported a quarterly net loss of $180 million (or ($1.03) per share), adjusted EBITDA of $74 million, and negative operating cash flow of $135 million. Also on April 25, 2017, the Company significantly reduced its net earning guidance from $535 million to $260 million for Fiscal 2017.
Following this news, shares of the Company’s stock fell $8.33 per share, or over 26.7%, to close on April 26, 2017 at $22.78 per share, on heavy trading volume.