The proposed securities class action covers buyers of GPGI Class A common stock from November 3, 2025 to May 6, 2026 and follows allegations that Husky’s value and outlook were overstated.
Glancy Prongay Wolke & Rotter LLP said a securities fraud class action has been filed on behalf of investors who bought or otherwise acquired GPGI, Inc. Class A common stock during the period from November 3, 2025 through May 6, 2026. Investors seeking to serve as lead plaintiff have until September 14, 2026 to ask the court for appointment. The case centers on GPGI’s acquisition history and subsequent financial disclosures. On August 7, 2024, the company, then known as CompoSecure, said investment firm Resolute Holdings intended to acquire a majority interest, a transaction that closed on September 17, 2024. CompoSecure later announced on January 12, 2026 that it had completed its acquisition of Husky Technologies Limited and rebranded itself as GPGI. The complaint points to a February 26, 2026 report by Jehosaphat Research alleging that GPGI overstated Husky’s value to win shareholder approval, including a claim that free cash flow was overstated by 90%. It also cites GPGI’s March 12, 2026 fourth-quarter and full-year 2025 results, which disclosed that Husky’s EBITDA (earnings before interest, taxes, depreciation and amortization) fell 5.4% year over year in the quarter and 3% for the full year. GPGI shares then dropped $2.19, or 11.09%, to $17.55 on March 12, 2026. The filing further references an April 22, 2026 lawsuit alleging that Resolute’s acquisition and control of CompoSecure, together with the Husky acquisition, formed part of a "multistep scheme" to drain value from GPGI for certain defendants. It then highlights GPGI’s May 7, 2026 first-quarter 2026 results, when the company said Husky’s net sales declined 5.2% year over year and EBITDA fell 40.2% because of "oil and resin price volatility and continued tariff uncertainty[,]" and customers "delay[ing] accepting shipments and placing orders." GPGI also cut its 2026 guidance, and the stock fell $4.52, or 25.9%, to close at $12.94 that day. According to the complaint, defendants made materially false or misleading statements and omitted key facts throughout the class period. The suit alleges they overstated Husky’s value, presented revenue and Adjusted EBITDA targets in the proxy statement without a reasonable objective basis, and pursued the Husky transaction in part to generate millions of dollars in fees for Resolute Holdings and the Individual Defendants rather than long-term value for CompoSecure shareholders.