GPGI Inc. investors who bought Class A stock between Nov. 3, 2025 and May 6, 2026 have until Sept. 14 to seek lead plaintiff status in a securities fraud class action over the Husky Technologies acquisition. The suit alleges the company overstated Husky's value, and shares have fallen as much as 25.9 percent since the allegations surfaced.
GPGI Inc. investors face a Sept. 14 lead plaintiff deadline in a securities fraud suit over the Husky Technologies acquisition.
The lawsuit, filed in the U.S. District Court for the Southern District of New York as City of Warren Police and Fire Retirement System v. GPGI, Inc., No. 1:26-cv-05951, alleges the company, formerly CompoSecure Inc., overstated Husky's value to win shareholder approval for the deal, according to Robbins LLP, which reminded investors of the case on Aug. 13.
The complaint alleges GPGI misrepresented that Husky was on track to hit the revenue and adjusted EBITDA targets in its proxy statement, and that a primary motivation of the acquisition was to generate millions of dollars in fees for Resolute Holdings and company insiders rather than create long-term value for CompoSecure shareholders.
GPGI shares have fallen sharply since the allegations surfaced. On March 12, after GPGI reported Husky's EBITDA declined 5.4 percent year over year in the fourth quarter and 3 percent for the full year, the stock dropped 16.4 percent over multiple sessions to $16.51 by March 13. On May 7, after first-quarter results showed Husky's net sales fell 5.2 percent and EBITDA dropped 40.2 percent year over year, shares plunged 25.9 percent to close at $12.94.
The declines followed a Feb. 26 report from Jehosaphat Research alleging GPGI had overstated Husky's value, including free cash flow by 90 percent. GPGI also slashed its 2026 guidance in the May 7 release.
Investors seeking lead plaintiff status must move the court by Sept. 14, 2026. A lead plaintiff, typically the investor or group with the largest financial interest, directs the litigation and selects counsel. Investors who do nothing remain absent class members and can still share in any recovery.
The suit adds legal pressure on GPGI as it integrates Husky, a plastics equipment maker acquired in January when CompoSecure rebranded. The company's next catalyst is its second-quarter earnings report, which will show whether Husky's margin decline has stabilized.
This article is for informational purposes only and does not constitute investment advice.
