Compass Minerals (CMP) Investor Settlement
Compass Minerals ($CMP) has reached a settlement with investors over claims that it misled them about the safety and approval of its fire retardant.
Outline
In 2023, Compass Minerals promoted its acquisition of Fortress North America and entry into the fire retardant market, claiming its magnesium chloride-based product was approved by the USFS and commercially viable. But in March 2024, the USFS declined the contract with Fortress after linking the product to corrosion damage in two aircraft. $CMP fell 23%, and investors filed a lawsuit.
Timeline
May 8, 2023 – Compass finalized the acquisition of Fortress North America.
March 22, 2024 – USFS informed Compass it would not make a contract with Fortress for the 2024 fire season due to safety concerns.
March 26, 2024 – Compass publicly disclosed corrosion issues tied to the product. $CMP fell 23%.
April 18, 2024 – News confirmed two aircraft were grounded due to corrosion caused by Fortress’s fire retardant.
April 24, 2024 – Investors filed a lawsuit, alleging Compass misled them about Fortress’s product safety and regulatory approval.
May 2, 2025 – Compass Minerals agreed to a settlement.
Background
Compass Minerals, a salt and mineral company, entered the fire retardant market by acquiring Fortress North America in 2023. Fortress developed a phosphate-free fire suppressant using magnesium chloride, which Compass marketed as a safe and effective alternative to conventional retardants.
Throughout 2023, Compass described Fortress’s product as “fully approved” and positioned the acquisition as a growth opportunity.
However, the company failed to disclose ongoing testing and compatibility issues. In March 2024, the USFS declined to include Fortress in its 2024 contracts after corrosion was detected in two aircraft.
When Compass disclosed the issue, the stock dropped 23% over two days.
Soon, investors filed suit, alleging the company misrepresented regulatory status, concealed product risks, and misled the market regarding Fortress’s readiness for commercial use.
What Can Investors Expect Now?
Compass Minerals ($CMP) has reached a settlement with investors over claims that it misled them about the safety and approval of its fire retardant.
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 or entities who purchased or otherwise acquired Compass Minerals International, Inc. common stock between February 8, 2023 and March 22, 2024, 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 $0.39 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.56 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors 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.