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Compass Minerals International, Inc.

Case Details

Class Period: October 31, 2017 - November 18, 2018
Date Filed: October 21, 2022
Case Number: 2:22cv02432
Jurisdiction: Kansas District Court
icon-casetype Case Type: Securities Case
Days Left to
Seek Plaintiff:
13

Case Summary

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.

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