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CMP.US
id: 1201
Compass Minerals (CMP) Investor Settlement
Late claims are being considered for compensation, subject to approval.
$4,900,000
Cash SettlementD. Kansas
Court2:24-cv-02165
Case number02/08/2023
Class period Start03/26/2024
Class period End10/07/2025
Claim deadlineCompass Minerals ($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.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.39
Filing date
04/24/2024
Lead Plaintiff Deadline
06/24/2024
Plaintiffs
John Valentine
Attorneys
Pomerantz Law Firm
Defendants
Kevin S. Crutchfield, Edward C. Dowling, Jr., Lorin Crenshaw, Jenny Hood
Administrator
Strategic Claims Services
Court hearing date
11/18/2025
Exclusion deadline
10/07/2025
Objection deadline
10/21/2025
Attorney fee
$1,688,333
Trades matching type
FIFO
Frequently Asked Questions
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