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.”

A Deal Under Intense Political Scrutiny

The merger saga unfolded against a shifting political backdrop. In January, President Joe Biden blocked Nippon’s purchase on national security grounds, warning it could weaken domestic steelmaking. Nippon and U.S. Steel sued soon after, claiming the decision was “purely political” and unconstitutional.

Then came a reversal: in April, President Donald Trump ordered a fresh national security review. By June, Trump signed an executive order approving the merger — but only after Nippon and U.S. Steel agreed to strict conditions, including a “golden share” giving the President veto power over major company decisions. The companies finalized the merger that same month.

Case Quietly Ends

Although Judge Horan had earlier dismissed a request for an injunction as moot once the merger went through, Nippon and U.S. Steel signaled they might pursue amended claims. But as the Sept. 8 deadline loomed, the parties abruptly announced the case was over.

“All claims filed in the lawsuit in the Western District of Pennsylvania, including against Cliffs and Cliffs’ CEO Lourenco Goncalves, have been dismissed,” U.S. Steel said in a joint statement with the USW. Both sides emphasized no money changed hands.

Legal Teams Behind the Battle

The legal standoff featured a roster of heavyweight law firms:

• U.S. Steel was represented by Milbank LLP, K&L Gates LLP, and Wachtell Lipton Rosen & Katz.

• Nippon Steel was backed by attorneys from K&L Gates LLP, Reed Smith LLP, and Ropes & Gray LLP.

• Cleveland-Cliffs and Goncalves turned to Quinn Emanuel Urquhart & Sullivan LLP and Pietragallo Gordon Alfano Bosick & Raspanti LLP.

• USW President David McCall was represented by Bredhoff & Kaiser PLLC, Healey Block LLC, and the union’s in-house counsel.

Focus Shifts Back to Steelmaking

In joint statements, both sides said they are ready to leave the courtroom behind. “The parties exchanged no financial consideration in connection with the termination of the litigation, and remain focused on steelmaking and collective bargaining,” U.S. Steel said.

For an industry where every deal can reshape global markets, the Nippon Cleveland suit dropping marks not just the end of a legal battle but a new chapter in one of steel’s most closely watched mergers.