CMP.US
id: 1201
Compass Minerals (CMP) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
D. Kansas
Court2:24-cv-02165
Case number02/08/2023
Class period Start03/22/2024
Class period EndCompass Minerals ($CMP) has reached a settlement with investors over claims that it misled them about the safety and approval of its fire retardant.
Case Details:
- $CMP stockholder filed a claim vs. Compass Minerals for overstating contract renewal prospects with the USFS and the safety testing results for its fire retardants.
- On March 25, 2024, news about the contract cancellation caused $CMP to fall 17%, losing $123M+ in shareholder value.
- Affected $CMP investors may join the claim to be notified about potential recovery.
Compass Minerals invested in Fortress North America, LLC, a fire retardant business, and acquired it fully on May 5, 2023.
In 2023, Fortress sold its products exclusively to the United States Forest Service in 2023.
On March 25, 2024, Compass announced USFS won't use fire retardants for 2024.
- USFS discovered corrosion in airtankers due to Fortress' fire retardants.
- Concerns over aircraft safety prompted USFS to delay contract terms.
After the news, $CMP dropped 17% the same day.
Based on these events, $CMP stockholder filed a claim against Compass Minerals and its leaders, accusing them of the following details:
- Compass Minerals exaggerated contract renewal prospects with U.S. Forest Service.
- They also overstated the level of testing confirming the safety of its fire retardants.
Considering all the representations, investors have reasons to suspect that Compass Minerals overstated contract renewal prospects with the USFS and the safety testing results for its fire retardants.
One of CMP's investors has already filed a claim vs. Compass Minerals in the District of Kansas court.
Case Status
Tentative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
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
Trades matching type
FIFO
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