CMP.US
id: 419
Compass Minerals (CMP) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
D. Kansas
Court2:22-cv-02432
Case number10/31/2017
Class period Start11/18/2018
Class period EndCompass Minerals has reached a tentative settlement with $CMP investors over claims that it misled them about expected cost savings and operational issues at its Goderich salt mine.
Overview:
In 2017, Compass Minerals was accused of touting that a new mining system at its Goderich salt mine would reduce expenses by $30M annually. However, costs increased, and production fell below expectations. Following this, $CMP dropped over 30%, and the company faced a lawsuit from investors.
Timeline
- October 31, 2017 – Compass Minerals announced its Goderich mine upgrades, projecting $30M in annual savings starting in 2018.
- October 23, 2018 – The company reported lower-than-expected production, erasing projected savings and causing $CMP to drop over 30%.
- December 20, 2022 – Investors filed a lawsuit, alleging the company misled them about expected cost savings and operational issues at Goderich.
- February 2025 – Compass Minerals has agreed to settle to resolve investor claims.
Background
In 2017, Compass Minerals introduced a continuous mining system at its Goderich salt mine, promising major cost savings and improved efficiency. The company projected $30M in annual savings starting in 2018.
However, internal reports showed that instead of achieving cost savings, production at Goderich fell short by 1.5 million tons in 2017 and 2.4 million tons in 2018, with most of the losses caused by underperforming equipment.
The mine was expected to produce 7.5 million tons annually, but output dropped below 5.4 million tons, significantly increasing costs.
By late 2018, Compass admitted that operational failures had erased the expected cost savings, and $CMP fell over 30%.
By 2019, the SEC launched an investigation into the company’s financial disclosures, and Compass removed its CEO due to decisions connected to Goderich. In 2022 Compass paid a $12M penalty for falsely claiming that the new mining system would cut costs, despite internal reports showing rising expenses and production shortfalls.
That same year, investors filed a lawsuit alleging Compass misled them about the true costs and production failures at Goderich.
What Can Investors Expect Now?
Compass Minerals has reached a settlement with $CMP investors over claims that it misled them about expected cost savings and operational issues at its Goderich salt mine.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements,
Fraud,
Failure to Disclose,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
12/20/2022
Plaintiffs
LOCAL 295 IBT EMPLOYER GROUP WELFARE FUND
Attorneys
Robbins Geller Rudman & Dowd LLP
Defendants
Kevin S. Crutchfield; Lorin Crenshaw; James D. Standen
Judge
Eric F. Melgren
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?