UNITED STATES STEEL INVESTIGATION INITIATED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates the Officers and Directors of United States Steel Corporation - (X)
time2017/10/14
UNITED STATES STEEL INVESTIGATION INITIATED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates the Officers and Directors of United States Steel Corporation - (X)
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into United States Steel Corporation X, +7.04%
On April 25, 2017, the Company revealed shockingly dismal Q1 2017 financial results including a net loss of $180 million, or negative $1.03 per diluted share, a negative operating cash flow of $135 million and a reduced 2017 outlook, including a 35% reduction to 2017 EBITDA guidance and reduced earnings guidance of 50% (from $3.08 per share to $1.50), among other things. During the April 26, 2017 conference call discussing the results, CEO Mario Longhi stated that the Company would “be taking more downtime at our facilities [in 2017], which will limit our steel production volumes.” This dismal performance occurred despite substantial improvement in the overall market and, as stated by Bloomberg, “choked earnings even as prices of the metal surged.”
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, multiple shareholder derivative lawsuits were also filed against the Company’s current and former executives.
KSF’s investigation is focusing on whether U.S. Steel’s officers and/or directors breached their fiduciary duties to the Company’s shareholders or otherwise violated state or federal laws.