Feb 5 (Reuters) - United Steelworkers President David
McCall filed a motion to dismiss U.S. Steel and Nippon
Steel's ( NISTF ) lawsuit against him, the union said on
Wednesday.
The two steelmakers filed the lawsuit in January after then
U.S. President Joe Biden blocked a $14.9 billion bid for the
123-year-old American steelmaker by the Japanese firm.
It named McCall, rival bidder Cleveland-Cliffs ( CLF ) and
its CEO Lourenco Goncalves, citing "their illegal and
coordinated actions" aimed at preventing the deal to allow
Cliffs to monopolize key steel markets.
"U.S. 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, arguing
that it was both the union's "right" and "responsibility" to
speak out against mergers that hurt union members and national
security.
Nippon Steel ( NISTF ) declined to comment. U.S. 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 proposed tie-up had become highly politicized ahead of
November's U.S. presidential election, with both Biden and
Donald Trump vowing to terminate it.
The USW opposed the deal on grounds of lack of transparency
and job security risks, despite Nippon's multiple attempts at
assuaging its concerns.
The union has, however, shown its support for Cliffs, which
was reported to be partnering with peer Nucor ( NUE ) to prepare
a potential all-cash bid for U.S. Steel last month.
Cleveland-Cliffs ( CLF ) also filed a motion on Tuesday to dismiss
the lawsuit against the company and Goncalves.
McCall filed the motion in the Western District of
Pennsylvania.