The Department of the Treasury of the State of New Jersey and its Division of Investment v. Cliffs Natural Resources Inc.
|Court:||United States District Court for the Northern District of Ohio|
|Class Period:||03/14/2012 - 03/26/2013|
|Case Leaders:||James A. Harrod, Jeremy P. Robinson, Rebecca E. Boon, Adam Hollander|
On May 12, 2014, BLB&G filed a securities class action lawsuit on behalf of the Department of the Treasury of the State of New Jersey and its Division of Investment against Cliffs Natural Resources Inc. (“Cliffs” or the “Company”) (NYSE: CLF) and certain of its senior executives. The action, which is captioned The Department of the Treasury of the State of New Jersey and Its Division of Investment v. Cliffs Natural Resources Inc., Case No. 1:14-cv-01031 (N.D. Ohio), asserts claims under the Securities Exchange Act of 1934 on behalf of investors in Cliffs common stock during the period from March 14, 2012 through March 26, 2013, inclusive (the “Class Period”).
The Complaint alleges that during the Class Period, Cliffs misrepresented to investors that one of its most important assets, an iron ore mine known as Bloom Lake, was a premium asset and that production at the mine could be increased even as production costs decreased. Defendants also repeatedly misled investors regarding the testing and sustainability of the Company’s dividend, which Cliffs dramatically increased by 123% on the first day of the Class Period. Once investors learned the complete truth regarding the massive problems at Bloom Lake and that the Company’s dividend was neither adequately tested nor sustainable, the price of Cliffs common stock dropped significantly, damaging plaintiff and the class.
The Department of the Treasury of the State of New Jersey was appointed Lead Plaintiff on July 23, 2014. Lead Plaintiff filed a Second Amended Complaint on March 31, 2015.
On May 15, 2015, Defendants moved to dismiss the Second Amended Complaint. Lead Plaintiff filed a brief in opposition to Defendants' motion to dismiss on June 12, 2015. On November 6, 2015, the Court issued an Opinion and Order denying Defendants’ motion to dismiss.
Lead Plaintiff Reaches a Settlement of the Action
On June 30, 2016, the Court granted final approval of the settlement of this Action reached by the Court-appointed Lead Plaintiff, The Department of the Treasury of the State of New Jersey and its Division of Investment, on behalf of itself and the other members of the Settlement Class, with defendants Terrance Paradie, Joseph Carrabba, Laurie Brlas, and David Blake (the “Settlement”). The Settlement provides for a payment of $84,000,000 in cash, and resolves all claims asserted in the Action.
If you are a member of the Settlement Class, your rights will be affected and you may be eligible for a payment from the Settlement. The Settlement Class consists of:
All persons and entities who or which purchased Cliffs common stock from March 14, 2012 through March 26, 2013, inclusive, and were damaged thereby, except for certain persons and entities who are excluded from the Settlement Class by definition (see paragraph 29 of the Settlement Notice) or pursuant to request.
Please read the Settlement Notice to fully understand your rights and options. Copies of the Settlement Notice and Claim Form (no longer available) can be found on the Case Documents page. You may also visit the Settlement website, http://www.cliffssecuritieslitigation.com, for more information about the Settlement.
Payments to eligible claimants will be made only after any appeals are resolved, and after the completion of all claims processing. Please be patient, as this process will take some time to complete.
If you wish to discuss this action or have any questions concerning your rights or interests, please contact James A. Harrod of BLB&G at 212-554-1502, or via e-mail at email@example.com.
August 8, 2016
Claim Filing Deadline. Claim Forms must be postmarked no later than August 8, 2016 to be eligible for a payment from the Settlement.
- Events BLB&G Partner Rebecca Boon Serves as Panelist at PLI Program, ESG 2022: What It Means for Boards, Management, and Counsel May 20, 2022 Learn More
- News BLB&G Senior Counsel Catherine van Kampen Appointed Co-Chair of the New York State Bar Association’s Committee on Leadership Development May 20, 2022 Learn More
- Events BLB&G Associate Andrew Blumberg Interviewed for ABA's Litigation Section Podcast on Delaware Supreme Court's Recent Brookfield Decision May 19, 2022 Learn More
- Events BLB&G Partner Hannah Ross to Speak at PAPERS Spring Forum May 18, 2022 Learn More
- Events BLB&G Partners John Rizio-Hamilton and Jesse Jensen Present Webinar on Auditor Regulation and Liability Under U.S. Securities Laws May 18, 2022 Learn More