NEW YORK, May 18, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in United States Steel Corporation ("U.S. Steel" or the "Company") (NYSE: X) of the July 3, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in U.S. Steel stock or options between November 1, 2016 and April 25, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/X. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Western District of Pennsylvania on behalf of all those who purchased U.S. Steel common stock between November 1, 2016 and April 25, 2017 (the "Class Period"). The case, Ortiz v. United States Steel Corporation et al, No. 2:17-cv-00579 was filed on May 3, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and/or failing to disclose that: (a) while implementing its Carnegie Way program, the Company was focused on cutting costs and not making investments necessary to position U.S. Steel so that it could respond to improved market conditions; (b) the Company's failure to invest in improving capital assets during the industry downturn, in order to report 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) the Company was 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, U.S. Steel's statements regarding its outlook and expected financial performance were false and misleading and lacked a reasonable basis.
Specifically, after market close on April 25, 2017, U.S. Steel reported a first quarter 2017 net loss of $180 million (or $1.03 per diluted share), which included an unfavorable adjustment of $35 million (or $0.20 per diluted share), associated with the loss on the shutdown of certain tubular assets.
On this news, U.S. Steel's share price fell from $31.11 per share on April 25, 2017 to a closing price of $22.78 on April 26, 2017—a $8.33 or a 26.8% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding U.S. Steel's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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