CLIFFS NATURAL RESOURCES, INC. (NYSE: CLV)
Zeldes Haeggquist & Eck, LLP, a shareholder and consumer rights litigation firm has commenced a lawsuit against Cliffs Natural Resources, Inc. (“Cliffs” or the “Company”) (NYSE: CLV) for securities law violations in connection with the Company’s initial public offering (“IPO”). A copy of the complaint can be found here.
Cliffs is an ire ore mining company incorporated and headquartered in Cleveland, Ohio, which had been developing three large iron ore and chromite mines in Canada. On February 15, 2013, Cliffs conducted an IPO in which it sold $675 million of stock to investors. Since the IPO, the stock has fallen nearly $6 per share, or 25%, to approximately $19 per share, wiping out over $162 million in shareholder value.
Our investigation focuses on whether Cliffs failed to disclose material information to investors regarding problems or delays with its Canadian mines. Specifically, we are investigating whether Cliffs made false statements or material omissions in its Registration Statement and Prospectus regarding development delays and operating and infrastructure problems at several of Cliffs’ iron ore and chromite mines in Canada.
Following the February 15, 2013 IPO, Cliffs announced that it was having significant problems developing several of its Canadian mines. The Company issued a series of announcements indicating project delays and suspensions, and that certain mines would remain idle or be closed completely due to, amongst other reasons, the Company’s inability to reduce operating costs.
After Cliffs announced the closing of its major Canadian mines, one of its largest shareholders, Casablanca Capital, issued a statement that it was “deeply concerned by the destruction of shareholder value suffered by shareholders.” It went on to say that “in the past five years, the company has spent approximately $8 billion (more than its current enterprise value) on what we view as ill-conceived acquisitions and development projects.”
What You Can Do
If you purchased Cliffs (NYSE: CLV) depository shares and have suffered a financial loss, you may have legal claims against the Company and/or its Officers and Directors. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Amber L. Eck at (619) 342-8000.