United Steelworkers president David McCall has filed a motion to dismiss US Steel and Nippon Steel's lawsuit against him, the union has said.
According to a report by Reuters, the two steelmakers filed the lawsuit in January after former president Joe Biden blocked a $14.9 billion bid for the American steelmaker by the Japanese firm.
The lawsuit named both McCall and rival bidder Cleveland Cliffs’ CEO Lourenco Goncalves, citing ‘their illegal and coordinated actions’, which the steelmakers claimed prevented the deal in order to allow Cliffs to monopolize key steel markets.
“US Steel and Nippon launched a frivolous and unsubstantiated attack on our union simply for exercising our First Amendment rights.”
Statement from United Steelworkers Union
“US Steel and Nippon launched a frivolous and unsubstantiated attack on our union simply for exercising our First Amendment rights,” the union said in a statement, stating that it was both the union's ‘right and responsibility to speak out against mergers that hurt union members and national security.’
"There are no valid legal defenses to that illegal conduct."
Statement from US Steel
Nippon Steel declined to comment. US Steel said in a statement that it would respond to the motion to dismiss shortly and would continue to pursue its claim. "There are no valid legal defenses to that illegal conduct," it added.
Biden blocked the deal on national security grounds but delayed enforcement pending a separate suit from the companies.
The USW opposed the deal on grounds of lack of transparency and job security risks, despite Nippon's multiple attempts at assuaging its concerns.
Cleveland-Cliffs also filed a motion on 4th February to dismiss the lawsuit against the company and Goncalves.
McCall filed the motion in the Western District of Pennsylvania.
Source: Reuters