(Reuters) -United Steelworkers President David McCall filed a motion to dismiss U.S. Steel and Nippon Steel’s 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 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 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 to prepare a potential all-cash bid for U.S. Steel last month.
Cleveland-Cliffs 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.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo, Kirsten Donovan)
