United States Steel Corporation Securities Litigation

U. S. Steel (NASDAQ: X) agreed to pay up to $40 million to settle a securities class action lawsuit to avoid further litigation.

The Complaint alleged that U.S. Steel and its Leaders concealed from the investing public the following facts:

• While the Company was implementing its Carnegie Way program, it was focused on cutting costs and was not making investments necessary to position U.S. Steel so that it could respond to improved market conditions;

• Failure to invest in improving capital assets during the industry downturn, in order to report apparent financial improvements, meant that U.S. Steel had higher production costs than its competitors, even in the face of improved pricing, which would negatively impact its financial results;

• Forestalling expensive capital equipment upgrades in order to boost the Company's short-term financial results at the expense of long-term financial performance, leaving U.S. Steel in need of accelerated, costly equipment upgrades that would leave the Company years away from generating improved financial performance; and