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CMP.US
id: 1201
Compass Minerals (CMP) USFS Contract Cancellation Case
D. Kansas
Court2:24-cv-02165
Case number29 Nov 2023
Class period Start22 Mar 2024
Class period End24 Jun 2024
Lead Plaintiff motion deadline- $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
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
25 March 2024
Filing date
24 April 2024
Lead Plaintiff Deadline
24 June 2024