NEW YORK, Dec. 16, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Compass Minerals International, Inc. (“Compass Minerals” or the “Company”) (NYSE: CMP) in the United States District Court of Kansas on behalf of all persons and entities who purchased or otherwise acquired Compass Minerals securities between October 31, 2017 and November 18, 2018, both dates inclusive (the “Class Period”). Investors have until December 20, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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.
On this news, 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.
On this news, 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.
If you purchased or otherwise acquired Compass Minerals shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.