The lawsuit, filed in the Southern District of New York under the name City of Warren Police and Fire Retirement System v. GPGI, Inc., centers on the company’s acquisition of Husky Technologies Limited. Plaintiffs claim that GPGI, formerly known as CompoSecure, misled shareholders by overstating the value of Husky and presenting revenue and EBITDA targets that lacked a factual basis. The complaint alleges that the acquisition was primarily designed to generate fees for Resolute Holdings Management, Inc. and individual defendants rather than to build long-term shareholder value.
Financial disclosures throughout 2026 triggered significant volatility in GPGI stock. Following reports in March that Husky’s EBITDA margins had compressed, the company's share price dropped 16% over two days. A subsequent announcement in May, which revealed a 40.2% year-over-year decline in Husky’s EBITDA and a downward revision of annual guidance, caused an additional 26% decline in the stock price. Robbins Geller Rudman & Dowd LLP, the firm representing the plaintiffs, is currently accepting inquiries from investors who suffered substantial losses during the class period.

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