Securities Arbitration Lawyers BlogSilver Law Investigates The Cleveland-Cliffs Inc. And Stelco Merger
Silver Law Group is currently investigating potential claims of investors receiving stock related to the recent merger of Cleveland-Cliffs, Inc. and Canadian company Stelco. If you suffered losses after investing, contact Silver Law Group to discuss your options. You may be eligible to recover your losses.
The Merger And The Investment Loss
Cleveland-Cliffs Inc. completed its acquisition of Stelco Holdings Inc. on November 1, 2024. In the wake of this merger, Cleveland-Cliffs reported significant financial losses for the full year 2024:
- GAAP net loss: $708 million (or $1.57 per diluted share)
- Adjusted net loss: $351 million (or $0.73 per diluted share)
- Adjusted EBITDA: $780 million, down from $1.9 billion in 2023
These losses were primarily attributed to a sharp decline in steel demand and lower steel prices, compounded by reduced domestic automotive production and increased competition from imported steel. The company’s financial performance was further impacted by acquisition-related expenses and integration costs associated with Stelco.
Fourth Quarter 2024 Losses
In the fourth quarter of 2024 alone, Cleveland-Cliffs reported:
- GAAP net loss: $434 million (or $0.92 per diluted share)
- Adjusted net loss: $332 million (or $0.68 per diluted share)
- Adjusted EBITDA loss: $81 million
This marked a substantial increase in losses compared to the same period in 2023, reflecting the challenging market conditions faced by the company post-merger.
Despite the losses in 2024, Cleveland-Cliffs management remains optimistic about a rebound in 2025, anticipating improved steel demand, cost reductions, and strategic benefits from the Stelco integration.
Securities Investigation And Shareholder Losses
Our securities investigation is underway regarding the Cleveland-Cliffs and Stelco merger. Silver Law Group is actively seeking investors who suffered financial losses resulting from the merger. The investigation is focused on whether there were misrepresentations or omissions related to the merger that contributed to these losses.
Did You Suffer Losses In The Cleveland-Cliffs/Stelco Merger?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to securities and investment fraud. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.