Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Compass Minerals International, Inc. (CMP)
/EIN News/ -- NEW YORK, April 26, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Kansas on behalf of all persons and entities who purchased securities of Compass Minerals International, Inc. (“Compass Minerals” or the “Company”) (NYSE: CMP) between November 29, 2023 and March 22, 2024, inclusive (the “Class Period”).
The Complaint alleges that Compass Minerals began a series of equity investments in Fortress North America, LLC, which it has described as “a next-generation fire retardant business dedicated to developing and producing a portfolio of magnesium chloride-based fire retardant products to help combat wildfires.” On May 5, 2023, Compass Minerals fully took over Fortress. In 2023, Fortress only sold its fire-retardant products to the United States Forest Service.
The Complaint further alleges that Defendants failed to disclose that (1) Compass Minerals overstated the likelihood that it would be awarded a renewed U.S. Forest Service contract for the use of its proprietary magnesium chloride-based aerial fire retardants for the 2024 fire season due to safety issues presented by its fire retardant, and (2) Compass Minerals materially overstated the extent to which testing had confirmed that its fire retardants were safe.
On March 25, 2024, the Company issued a press release announcing that the U.S. Forest Service would not be entering into a contract for the use of magnesium chloride-based aerial fire retardants for the 2024 fire season. On this news, the price of Compass Minerals stock fell $3.00 per share, or 17.09%, to close at $14.55 on March 25, 2024. The next day, Compass Minerals stock fell a further $0.86 per share, or 5.91%, to close at $13.69.
Investors who purchased or otherwise acquired shares of Compass Minerals should contact the Firm prior to the June 24, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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