Zeldes Haeggquist & Eck LLP Announces Investigation of Cliffs Natural Resources, Inc.
May 12 2014 - 8:01AM
Business Wire
Zeldes Haeggquist & Eck, LLP, a shareholder and consumer
rights litigation firm has commenced an investigation into Cliffs
Natural Resources, Inc. (“Cliffs” or the “Company”) (NYSE: CLV) for
securities law violations in connection with the Company’s initial
public offering (“IPO”).
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 or via email at ambere@zhlaw.com.
About Zeldes Haeggquist & Eck LLP
Zeldes Haeggquist & Eck is a full-service law firm which
brings major class actions nationwide on behalf of defrauded
investors and consumers and handles a variety of complex business
litigation matters. Please visit www.zhlaw.com or our blog for more
information about the firm.
Zeldes Haeggquist & Eck LLPAmber L. Eck,
619-342-8000ambere@zhlaw.com
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