SAN DIEGO, Oct. 28, 2022 (GLOBE NEWSWIRE) — The class: Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of all purchasers of common stock of Compass Minerals International, Inc. (NYSE: CMP) between October 31, 2017 and November 18, 2018, alleging violation of the Securities Exchange Act of 1934.
And now: Shareholders in the same situation may be eligible to participate in the class action against Compass Minerals. Shareholders who wish to be named lead class plaintiff must file their documents by December 20, 2022. A lead plaintiff is a representative acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback. For more information, click here.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
What this case is about: Compass Minerals International, Inc. (CMP) misrepresented the cost of mining and the company’s salt production levels
According to the complaint, Compass Minerals mines and produces essential minerals, including salt for winter road safety and other consumer, industrial and agricultural uses, and specialty minerals for plant nutrition that improve the quality and crop yield. During the Class Period, Compass Minerals operated the world’s largest underground rock salt mine in Goderich, Ontario, Canada, which the company has consistently hailed as the “crown jewel” of its mining portfolio. assets. Prior to the start of the Class Period, the Defendants announced that the company was investing in upgrading Goderich’s mining system, from drilling and blasting to continuous mining and continuous haul (“CMCH”). ), mainly with the aim of reducing costs. and improve profitability. At that time, the Company expected the project to cost between $70 million and $80 million and, after full implementation, would reduce the unit cost to Goderich by more than 23%, saving the Company approximately $30 million per year as of 2018.
Defendants have repeatedly assured investors that the CMCH upgrade at the Goderich mine is on track to significantly reduce costs and increase the company’s operating results from 2018. However, the statements of the defendants were misleading because they did not tell investors that costs at the Goderich mine were rising. rather than decreasing. Defendants also misrepresented the amount of salt the company 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 earnings. future operation.
On October 23, 2018, the Company pre-announced third quarter 2018 financial results that were significantly below expectations and lowered its outlook for the remainder of the year. Following this announcement, Compass Minerals’ stock price fell more than 30% over the next two days. Then, before the market opened on November 19, 2018, the Company announced the sudden departure of its CEO, Malecha. Following this announcement, Compass Minerals’ stock price fell 8% over the next three days.
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