LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors who purchased United States Steel Corporation (“U.S. Steel” or the “Company”) (NYSE: X) securities between November 1, 2016 and April 25, 2017, inclusive (the “Class Period”). U.S. Steel investors have until July 3, 2017 to file a lead plaintiff motion.
Investors suffering losses on their U.S. Steel investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to email@example.com.
On April 25, 2017, U.S. Steel disclosed a net loss of $180 million for the first quarter 2017, which included an unfavorable adjustment of $35 million, or $0.20 per diluted share. These disappointing results were primarily driven by the closing of tubular assets and fell well short of meeting analysts’ expectations for the Company. The Company also noted that U.S. Steel changed accounting methods on property and other items and the impact of the change is included in 2017 outlook. On this news, shares of U.S. Steel fell sharply, over 26%, on April 26, 2017.
The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to disclose that: (1) while the Company was implementing its Carnegie Way program, it was focused on cutting costs and was not making investments necessary to position U.S. Steel so that it could respond to improved market conditions; (2) Defendants' failure to invest in improving capital assets during the industry downturn, in order to report apparent 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; and (3) Defendants were 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.
If you purchased shares of U.S. Steel during the Class Period you may move the Court no later than July 3, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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