Nippon Steel and US Steel File Lawsuit Over Thwarted Acquisition Attempt
The initial lawsuit presented in the U.S. Court of Appeals for the District of Columbia Circuit alleges a violation of the companies' constitutional right to due process.
TroibNews 
Nippon Steel and U.S. Steel announced on Monday that they have initiated two lawsuits in response to President Joe Biden’s decision to prevent the Japanese firm from acquiring the Pittsburgh-based steel manufacturer for $14.9 billion.
President-elect Donald Trump also expressed his disapproval of the deal through a post on his social media platform Truth Social. “Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company? Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!”
As the 2024 presidential election approaches, the deal has emerged as a significant issue, with candidates seeking support from labor unions and blue-collar workers, especially in the Rust Belt. Biden, Trump, and Vice President Kamala Harris have all taken a stance against the acquisition.
The first lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit and claims a violation of the companies’ constitutional right to due process. The legal arguments assert that Biden's decision to block the acquisition stemmed from “purely political reasons” and that the Committee on Foreign Investment in the United States, which reviews such transactions for national security implications, did not properly analyze the case as required. The plaintiffs are requesting a new assessment from CFIUS regarding the deal.
The second lawsuit was lodged in U.S. District Court for the Western District of Pennsylvania against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall. Nippon and U.S. Steel allege that these parties unlawfully conspired to obstruct the transaction, partly to hinder any potential buyers other than Cleveland-Cliffs from acquiring U.S. Steel. Cleveland-Cliffs, based in Ohio, had earlier made an
Sophie Wagner for TROIB News
President-elect Donald Trump also expressed his disapproval of the deal through a post on his social media platform Truth Social. “Why would they want to sell U.S. Steel now when Tariffs will make it a much more profitable and valuable company? Wouldn’t it be nice to have U.S. Steel, once the greatest company in the World, lead the charge toward greatness again? It can all happen very quickly!”
As the 2024 presidential election approaches, the deal has emerged as a significant issue, with candidates seeking support from labor unions and blue-collar workers, especially in the Rust Belt. Biden, Trump, and Vice President Kamala Harris have all taken a stance against the acquisition.
The first lawsuit was filed in the U.S. Court of Appeals for the District of Columbia Circuit and claims a violation of the companies’ constitutional right to due process. The legal arguments assert that Biden's decision to block the acquisition stemmed from “purely political reasons” and that the Committee on Foreign Investment in the United States, which reviews such transactions for national security implications, did not properly analyze the case as required. The plaintiffs are requesting a new assessment from CFIUS regarding the deal.
The second lawsuit was lodged in U.S. District Court for the Western District of Pennsylvania against Cleveland-Cliffs, its CEO Lourenco Goncalves, and United Steelworkers President David McCall. Nippon and U.S. Steel allege that these parties unlawfully conspired to obstruct the transaction, partly to hinder any potential buyers other than Cleveland-Cliffs from acquiring U.S. Steel. Cleveland-Cliffs, based in Ohio, had earlier made an
Sophie Wagner for TROIB News
