Cliffs Natural Resources reaches multi-million settlement with shareholders

The parent company of Wabush Mines says it has reached a settlement out of court with disgruntled shareholders.

The shareholders sued Cliffs Natural Resources in mid-2014 over the impact of Quebec's Bloom Lake mine on the company's bottom line.

It was alleged the former board of directors and management made misleading statements about the mine and failed to keep costs in check.

Ohio-based Cliffs Natural Resources said its insurance will cover the cost of the $84-million-dollar lawsuit.

The company has also agreed to adopt changes to its corporate governance policies, protocols and practices. 

Ciffs bought Bloom Lake for almost $5 billion when iron ore prices were at their peak.

It ended up in creditor protection.

Late last year, Champion Iron bought the mine for just over $10 million and agreed to take on $41 million in liabilities.