We are investigating Mesabi Trust (MSB) (“Mesabi” or the “Company”) for potential violations of the federal securities laws.
On April 13, 2020, Mesabi issued a press release declaring a $0.56 per share quarterly dividend, representing a significant decrease from its prior dividend of $0.70 per share. Mesabi advised investors that the decrease was “primarily attributable to a lower volume of iron ore shipments, at lower prices, during the three month period ended December 31, 2019 compared to the same period of 2018, and to the Trust’s receipt of total royalty payments of $9,410,394 on January 30, 2020 from Northshore Mining Company (‘Northshore’), which was lower than the total royalty payments of $12,388,664 received by the Trust from Northshore in January 2019.” On this news, Mesabi’s stock price fell sharply during intraday trading on April 14, 2020, damaging investors.