An investigation on behalf of investors in common stock of Steel Dynamics Inc. (NASDAQ:STLD) during the period from January 27, 2009, through March 11, 2009 was announced over possible Federal Securities Law violations by STLD concerning guidance disseminated Steel Dynamics Inc. for the first quarter 2009, that may not have had any basis in fact, and which allowed massive selling by Steel Dynamics Inc.s co-founder at prices stabilized by this positive news.

On January 26, 2009, Steel Dynamics, Inc. reported a loss for the fourth quarter of 2008 of $0.83 per share resulting from the massive slowdown in the economy and tight credit markets. Steel Dynamics, Inc. provided earnings guidance for the first quarter of 2009, of between $0.5 and $0.15 per share, and stated that earnings for the remainder of 2009 could possibly equal Steel Dynamics, Inc.s excellent performance in 2008.

According to the press release the investigation by a law firm focuses over possible Federal Securities Law violations by STLD based as a result of this disclosure, Steel Dynamics, Incs share price rose on January 27, 2009 and thereafter and then on March 11, 2009, Steel Dynamics, Inc shocked the market by withdrawing this guidance and admitted that Steel Dynamics, Inc would lose between $0.40. and $0.45 per share in the first quarter 2009. Steel Dynamics, Inc also admitted, so the investigation, that the financial outlook for Steel Dynamics, Incs performance for the remainder of 2009 remained clouded, and that 2009 would be a challenge and as a result of this disclosure, Steel Dynamics, Incs share price has declined by 19% on greatly increased volume. The investigation alleges that in February, 2009, John C. Bates, Steel Dynamics, Inc co-founder, director and one of its largest shareholders sold over $27 million of his own shares at prices inflated by Steel Dynamics, Incs questionable first quarter 2009 guidance.