After months of legal wrangling, Nippon Steel Corp. and U.S. Steel Corp. have dropped their lawsuit against rival Cleveland-Cliffs Inc. and the United Steelworkers union, closing one of the most contentious chapters in the battle over the $14.9 billion U.S. Steel–Nippon merger.
On Wednesday, the companies filed notice with the federal court in Pittsburgh that they were discontinuing the case with prejudice, meaning the claims cannot be refiled. U.S. District Judge Marilyn J. Horan signed off on the dismissal Thursday morning.
From Courtroom Clash to Corporate Closure
The lawsuit had accused Cleveland-Cliffs and the USW of conspiring to sabotage Nippon’s takeover of U.S. Steel after Cliffs’ own lower bid was rejected. Nippon and U.S. Steel argued the alleged interference was part of a scheme to push the Japanese company out and allow Cleveland-Cliffs to scoop up its competitor on the cheap.
Cleveland-Cliffs countered by saying its efforts were protected political speech, noting that CEO Lourenco Goncalves openly lobbied against the deal.
“This outcome speaks for itself,” Goncalves said Thursday in a statement. “The case has been dismissed with prejudice, there was no financial consideration exchanged, and all claims have been released.”
