StockNews.AI
CLF
StockNews.AI
99 days

Kirby McInerney LLP Announces Investigation of Claims Against Cleveland-Cliffs Inc. (CLF) on Behalf of Investors

1. Cleveland-Cliffs faces investigation for potential securities law violations. 2. Company reported larger-than-expected losses and an 11% revenue drop. 3. CEO cites underperforming assets and plans to idle six steel plants. 4. Shares declined from $8.49 to $7.15 following the latest press release. 5. Repositioning strategy focuses on the automotive industry.

4m saved
Insight
Article

FAQ

Why Very Bearish?

The combination of a significant loss, revenue decline, and plant idling negatively affects investor confidence, reminiscent of past financial struggles in similar sectors where stock prices dropped significantly. For instance, when Steel Dynamics faced operational setbacks in 2024, its stock price fell by over 30% within weeks.

How important is it?

The investigation into securities law violations, coupled with poor financial performance, may lead to regulatory penalties or deeper market distrust, thus significantly impacting CLF’s stock.

Why Short Term?

The immediate negative publicity from investigations and poor earnings will likely influence stock sentiment quickly, similar to swift market reactions following negative earnings reports in mining and materials.

Related Companies

XSTLDRS
NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Cleveland-Cliffs Inc. (“Cleveland-Cliffs” or the “Company”) (NYSE:CLF). The investigation concerns whether Cleveland-Cliffs and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] On May 7, 2025, Cleveland-Cliffs issued a press release reporting its financial results for the first quarter of 2025. Among other items, Cleveland-Cliffs reported a larger than expected adjusted loss and an 11% year-over-year revenue decline to $4.63 billion. The Company also announced plans to fully or partially idle six steel plants. Cleveland-Cliffs’ Chief Executive Officer attributed the operational changes to negative effects from underperforming non-core assets and the lagging effect of lower index prices in late 2024 and early 2025 and said that the Company is repositioning its portfolio away from non-core markets, including rail, high-carbon sheet, and specialty plate products, and toward the automotive industry. On this news, the price of Cleveland-Cliffs shares declined by $1.34 per share, from $8.49 per share on May 7, 2025, to close at $7.15 on May 8, 2025. If you purchased or otherwise acquired Cleveland-Cliffs securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out the form below to discuss your rights or interests with respect to these matters without any cost to you. [CONTACT US] Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. ContactsKirby McInerney LLPThomas W. Elrod, Esq.212-699-1180https://www.kmllp.cominvestigations@kmllp.com

Related News