Compass Minerals International Class Action Lawsuit (CMP Lawsuit)
What Is The Compass Minerals International Class Action Lawsuit About?
The CMP Class Action Lawsuit (NYSE: CMP) (Compass Minerals International Class Action Lawsuit) was filed when after the market closed on November 19, 2018, the Company announced the abrupt termination of its CEO, defendant Malecha.
An analyst at BMO Capital Markets reported: “We believe this change speaks to the severity of the issues at Goderich . . . .” Following this announcement, the price of Compass Minerals stock declined by 8% over the following three days.
Is There a Compass Minerals International Class Action Lawsuit?
CMP:NYSE Class Action Lawsuit (Compass Minerals International) was filed on October 21, 2022 on behalf of shareholders. The lawsuit was filed because on February 13, 2018, after the market closed, Compass Minerals filed with the SEC a Form 8-K announcing its financial results for the fourth quarter of fiscal 2017.
On the following day, February 14, 2018, the Company held an earnings call for analysts and investors to discuss the fourth quarter results.
On the earnings call, defendant Standen stated: [W]e expect a healthy rebound in operating margins in the second half of 2018. Second half 2018 margins will also benefit from continuous mining savings at Goderich.
We already achieved about $5 million of savings in 2017 when we finished installing the fourth [CMCH] mining system and completely stopped drilling and blasting in the fourth quarter.
Following the release of the fourth quarter 2017 results, CM stock price declined by 9.1% over the following two trading days, 4.3% for second quarter 2018 results, 30% for the third quarter of 2018 and 8% on November 19, 2018.
Is There A Deadline For The CMP Lawsuit?
How Much Did Shareholders Lose In CMP Stock?
Following the release of the fourth quarter 2017 results, Shareholders who held CMP securities saw Compass Minerals International stock price declined by 9.1% over the following two trading days, 4.3% for second quarter 2018 results, 30% for the third quarter of 2018 and 8% on November 19, 2018.
What Is The Compass Minerals International Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a CMP class action lawsuit (Compass Minerals International Class Action Lawsuit) has been filed on behalf of investors who purchased Compass Minerals International Class Action Lawsuit (CMP) securities between October 31, 2017 and November 18, 2018. For more on the CMP Lawsuit please contact us today.
According to the Compass Minerals International lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(a) Goderich’s new CMCH mining system resulted in the Company incurring
additional operating costs rather than cost savings. Cost overages were blamed on one-off items, such as a mine ceiling collapse incident, to hide operating costs associated with the CMCH upgrade;
(b) Goderich’s new CMCH mining system was unable to produce targeted
levels of salt during this period. The Company’s salt production consistently fell below internal expectations and was less than one-half of the salt it needed to produce to generate the anticipated cost savings;
(c) the purported annual salt production capacity for Goderich of eight million
tons was significantly overstated. Although Goderich had been able to produce nearly eight million tons of salt annually using drill-and-blast mining, Goderich was discontinuing that method of producing salt, and the CMCH system was not capable of mining that level of salt during this period;
(d) the purported anticipated annual cost savings attributed to the new CMCH
mining system were significantly overstated. Even at targeted production levels, Goderich’s CMCH mining system was expected to generate significantly less than the $30 million in annual cost savings the Company had represented to investors;
(e) the purported realized cost savings attributed to the new CMCH mining
system were significantly overstated. Cost savings generated by other unrelated projects at Goderich were attributed to the CMCH upgrade; and
(f) as a result of (a)-(e) above, defendants’ statements about Compass Minerals’ Salt segment business condition and prospects were materially false and misleading when made.
If you suffered a loss in Compass Minerals International you have until December 20, 2022 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired Compass Minerals International securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The Compass Minerals International class action lawsuit is directed by the lead plaintiff. To litigate the CMP Class Action lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Compass Minerals International Class Action Lawsuit.
What Does Compass Minerals International Do?
Compass Minerals International, Inc., produces and sells essential minerals primarily in the United States, Canada, Brazil, the United Kingdom, and internationally. It operates through three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America.
The Salt segment offers sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with salt to produce specialty products.
This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services.
The Plant Nutrition North America segment offers sulfate of potash specialty fertilizers in various grades, including agricultural products that are used in broadcast spreaders, direct application, and liquid fertilizer solutions; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products under the Protassium+ brand; and micronutrient products under the Wolf Trax and other brands.
This segment provides its products to distributors and retailers of crop inputs, as well as growers.
The Plant Nutrition South America segment offers various specialty plant nutrients and supplements; water and wastewater treatment chemicals for cleaning, decontaminating, and purifying water; and process chemicals for industrial use.
The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003.
Compass Minerals International, Inc. was founded in 1993 and is headquartered in Overland Park, Kansas.
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