United Steelworkers President Files Motion to Dismiss Lawsuit
United Steelworkers (USW) president David McCall has filed a motion to dismiss a lawsuit filed against him by U.S. Steel and Nippon Steel. The lawsuit, filed last month, accused McCall, rival bidder Cleveland-Cliffs, and its CEO Lourenco Goncalves of "illegal and coordinated actions" aimed at preventing the $14.9 billion deal between U.S. Steel and Nippon Steel.
The deal, which was initially blocked by former President Joe Biden on national security grounds, had faced opposition from the USW due to concerns about transparency and job security. Despite Nippon's attempts to address these concerns, the USW has shown support for Cleveland-Cliffs, which reportedly partnered with Nucor to prepare a potential all-cash bid for U.S. Steel.
In their lawsuit, U.S. Steel and Nippon allege that Cliffs, Goncalves, and McCall colluded to allow Cliffs to "monopolize the domestic steel markets" by thwarting other attempts to acquire U.S. Steel. The USW, however, maintains that the lawsuit is a "frivolous and unsubstantiated attack" on the union for exercising its First Amendment rights.
The motion to dismiss was filed in the Western District of Pennsylvania. The outcome of the lawsuit and the fate of the U.S. Steel deal remain uncertain.