United States Steel Corporation
Robbins Arroyo LLP: United States Steel Corporation (X) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against United States Steel Corporation (NYSE: X) in the U.S. District Court for the Western District of Pennsylvania. The complaint is brought on behalf of all purchasers of U.S. Steel securities between November 1, 2016 and April 25, 2017, for alleged violations of the Securities Exchange Act of 1934 by U.S. Steel’s officers and directors. U.S. Steel produces and sells flat-rolled and tubular steel products primarily in North America and Europe.
U.S. Steel Accused of Overstating Its Expected Financial Performance
According to the complaint, in 2013, U.S. Steel launched a process called the “Carnegie Way,” which was a business strategy designed to create stockholder value. In the company’s 2016 Form 10-K filed with the U.S. Securities and Exchange Commission on February 28, 2017, U.S. Steel stated that “[t]he Carnegie Way has already driven a shift in the Company that has enabled us to withstand the prolonged downturn in steel prices while positioning us for success in a market recovery.” However, on April 25, 2017, U.S. Steel reported a net loss of $180 million, or negative $1.03 per diluted share, and a negative operating cash flow of $135 million. The company further revealed a reduced 2017 outlook that widely missed analyst expectations, including a 35% reduction to its 2017 adjusted earnings guidance before interest, tax, depreciation, and amortization. During a conference call on April 26, 2017, U.S. Steel’s Chief Executive Officer, Mario Longhi, stated that the company would “be taking more downtime at our facilities, which will limit our steel production volumes.” On this news, U.S. Steel’s stock fell 26% to close at $22.78 per share on April 26, 2017.
U.S. Steel Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.