1. Cleveland-Cliffs faces investigation for potentially misleading financial disclosures. 2. Q1 2025 saw a $483 million net loss, worse than Q4 2024. 3. Stock dropped 15% on May 8 and 2% more on May 9. 4. A class action lawsuit is being prepared for affected shareholders. 5. Company plans to idle six facilities to cut losses and improve cash flow.
The significant, unforeseen losses and subsequent stock drop indicate a loss of investor trust. Historical cases of misleading disclosures led to similar downturns; e.g., Enron's collapse.
The potential class action could lead to significant financial liabilities for CLF, affecting stock prices. Overall investor confidence can be shaken by the litigation implications.
The immediate aftermath of the news suggests volatility may persist; similar incidents previously caused sustained declines. Short-term sentiment typically reacts sharply to negative earnings reports.
Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Cleveland-Cliffs Inc. (NYSE: CLF) resulting from allegations that Cliffs may have issued materially misleading business information to the investing public.
If you purchased Cliffs securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=41168 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email info@rosenlegal.com for information on the class action.
On May 7, 2025, Cliffs Inc. issued a press release containing its financial results for the first quarter of 2025. In part, Cliffs reported a $483 million GAAP net loss for the quarter, compared to a $434 million GAAP net loss for the fourth quarter of 2024. Further, Cliffs announced that it had "made the decision to fully or partially idle six facilities to optimize its footprint, reposition away from loss-making operations, and release excess working capital." The press release contained a statement from Cliffs' CEO, who stated in part that Cliffs' "first-quarter results were negatively impacted by underperforming non-core assets and the lagging effect of lower index prices in late 2024 and early 2025."
On this news, Cliffs' stock fell over 15% on May 8, 2025, and a further 2% on May 9, 2025.
We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. At the time, Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone, the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by Law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
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Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
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