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Brazil court rules against Nippon Steel over bid to protect former Usiminas CEO

A Brazilian court ruled against Nippon Steel & Sumitomo Metal Corp.'s call to dismiss a lawsuit brought by Usinas Siderúrgicas de Minas Gerais SA against the Nippon Steel-backed former CEO Rômel de Souza, Reuters reported June 8, citing a securities filing.

The Brazilian steelmaker noted the decision was related to Nippon Steel's claims that the removal of de Souza by the Usiminas board was illegal.

The board voted de Souza out in March for his role in committing to compensate Mineração Usiminas SA, a joint venture between Usiminas and Sumitomo Corp., for purchasing less than the previously agreed 4 million tonnes of iron ore per year.