Published: February 9, 2016 |

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Cliffs Natural Resources Inc. has reached agreements in principle to settle both the putative federal securities class action pending in the United States District Court for the Northern District of Ohio, and the combined shareholder derivative actions pending in the Court of Common Pleas of Cuyahoga County, Ohio. 

The lawsuits were brought against the company and/or a number of its former directors and officers in 2014 before the change of control which occurred coincident with the July 2014 annual shareholder meeting. These lawsuits were based, among other things, on the alleged dissemination of false or misleading information by the previous management and previous board of directors regarding the company’s former Bloom Lake mine in Canada, the impact of those operations on the company’s financial outlook, including the sustainability of the common stock dividend, and alleged failures to maintain internal controls and appropriately oversee and manage the development of the Bloom Lake mining operation.

The settlement agreements contain no admission of liability or wrongdoing and include a full release of all defendants in connection with the allegations made in the lawsuits.

The settlement of these lawsuits will have no impact on the company’s financial position or operations. The agreement in the securities action provides for a settlement payment to the class of $84,000,000, the totality of which will be paid by the company’s third party insurance carriers.  Under the terms of the settlement for the derivative actions, the company has agreed to adopt a number of changes to its corporate governance policies, protocols and practices.  In addition, the company’s insurance carriers will pay $775,000 for plaintiff’s attorneys’ fees and costs, subject to court approval.

About Cliffs Natural Resources
Cliffs Natural Resources Inc. is a leading mining and natural resources company in the United States. The company is a major supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also operates an iron ore mining complex in Western Australia. Driven by the core values of safety, social, environmental and capital stewardship, Cliffs’ employees endeavor to provide all stakeholders operating and financial transparency.

To stop by Cliffs Natural Resources’ website, CLICK HERE

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