SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit seeking to represent purchasers of Compass Minerals International, Inc. (NYSE: CMP) common stock between October 31, 2017 and November 18, 2018, inclusive (the “Class Period”). Captioned Local 295 IBT Employer Group Welfare Fund v. Compass Minerals International, Inc., No. 22-cv-2432 (D. Kan.), the Compass Minerals class action lawsuit charges Compass Minerals and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Compass Minerals class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-compass-minerals-international-inc-class-action-lawsuit-cmp.html
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. Lead plaintiff motions for the Compass Minerals class action lawsuit must be filed with the court no later than December 20, 2022.
CASE ALLEGATIONS: Compass Minerals mines and produces essential minerals, including salt for winter roadway safety and other consumer, industrial, and agricultural uses, and specialty plant nutrition minerals that improve the quality and yield of crops. During the Class Period, Compass Minerals operated three business segments: the Salt segment, the Plant Nutrition North America segment, and the Plant Nutrition South America segment. Within the Salt segment, Compass Minerals operated the largest underground rock salt mine in the world in Goderich, Ontario, Canada, which Compass Minerals routinely hailed as the “crown jewel” of its asset portfolio. Prior to the start of the Class Period, defendants announced that Compass Minerals was investing in upgrades to the mining system at Goderich, from drilling-and-blasting to continuous mining and continuous haulage (“CMCH”), primarily in an effort to reduce costs and improve profitability.
The Compass Minerals class action lawsuit alleges that defendants throughout the Class Period repeatedly assured investors that the CMCH upgrade at the Goderich mine was on track to materially reduce costs and boost Compass Minerals’ operating results starting in 2018. However, defendants’ statements were misleading because they failed to tell investors that costs at the Goderich mine were increasing rather than decreasing. The Compass Materials class action lawsuit further alleges that defendants also misrepresented the amount of salt Compass Minerals was able to produce at Goderich using the new CMCH equipment and failed to disclose how the known and ongoing production shortfalls it was experiencing were reasonably expected to reduce its future operating income.
On February 13, 2018, Compass Minerals announced its financial results for the fourth quarter of fiscal 2017. On the following day, Compass Minerals held an earnings call for analysts and investors to discuss the fourth quarter results. Following the release of the fourth quarter 2017 results, Compass Minerals’ stock price declined by more than 9% over the following two trading days.
Then, on August 7, 2018, Compass Minerals announced its second quarter of fiscal 2018 results, attributing the decrease in Salt operating earnings to various costs overruns, unrelated to the CMCH transition. Following the release of the second quarter 2018 results, the price of Compass Minerals stock declined by 4.3%.
Next, October 23, 2018, Compass Minerals pre-announced third quarter 2018 financial results that were significantly below expectations and lowered its outlook for the remainder of the year. On this news, the price of Compass Minerals stock declined by more than 30% over the following two trading days.
Finally, on November 19, 2018, Compass Energy announced the abrupt termination of its CEO, defendant Francis J. Malecha. On this news, the price of Compass Minerals stock declined by an additional 8% over the following three days, further damaging investors.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Compass Minerals common stock during the Class Period to seek appointment as lead plaintiff in the Compass Minerals class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Compass Minerals class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Compass Minerals class action lawsuit. An investor’s ability to share in any potential future recovery of the Compass Minerals class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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Contacts
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
[email protected]