Compass Minerals (CMP) Investor Settlement
Compass 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.
Frequently Asked Questions
All persons who purchased or otherwise acquired publicly Compass common stock during the period from October 31, 2017 through November 18, 2018, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $1.5 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $6 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit the claim and make sure you get the maximum possible payout
3. File a claim with the settlement administration
4. Correspond with the settlement administration to resolve emerging issues
5. Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.