Compass Minerals International, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Kansas on behalf of those who acquired Compass Minerals International, Inc. (“Compass Minerals” or the "Company") (NYSE: CMP) securities between October 31, 2017 through November 18, 2018 (the “Class Period”). Investors have until December 20, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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, the Company operated three business segments: the Salt segment, the Plant Nutrition North America segment, and the Plant Nutrition South America segment. The Salt segment represented approximately 60% of the Company’s consolidated revenues during the Class Period.
On February 13, 2018, Compass Minerals announced its financial results for the fourth quarter of fiscal year 2017. On the following day, Compass Minerals held an earnings call for analysts and investors to discuss the fourth quarter results. On this news, the price of Compass Minerals shares declined by $1.50 per share, or approximately 2.17%, from $69.25 per share to close at $67.75 on February 14, 2018.
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 shares declined by $2.95 per share, or approximately 4.32%, from $68.25 per share to close at $65.30 on August 7, 2018.
On 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 shares declined by $13.19 per share, or approximately 19.43%, from $67.89 per share to close at $54.70 on October 23, 2018.
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 shares declined by $1.00 per share, or approximately 1.90%, from $52.50 per share to close at $51.50 on November 19, 2018.
The lawsuit alleges that, throughout the Class Period, Defendants 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 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.