The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired GPGI, Inc. (formerly known as CompoSecure, LLC) (“GPGI” or the “Company”) (NYSE: GPGI) common stock between November 3, 2025 and May 6, 2026, inclusive (“the Class Period”).
If you suffered a loss on your GPGI investments, you have until September 14, 2026 to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. If you choose to take no action, you may remain an absent class member. For more information about the lawsuit:
[CONTACT THE FIRM IF YOU SUFFERED A LOSS]
What Is This Lawsuit About? The lawsuit alleges that GPGI misled investors about its acquisition of Husky Technologies Limited (“Husky”) and the Company’s overall business prospects. Specifically, the lawsuit alleges that GPGI’s management represented that the Husky deal was "highly accretive”, that Husky was valued at roughly $5 billion, and GPGI’s earnings would grow sharply through 2030 post-acquisition — while allegedly overstating Husky’s value, presenting revenue and earnings targets that lacked a reasonable basis, and downplaying a management-fee arrangement with Resolute Holdings Management, Inc. (“Resolute Holdings”), another public company controlled by GPGI Chairman David M. Cote’s family.
On February 26, 2026, short seller Jehoshaphat Research claimed that GPGI had overstated the value of Husky in order obtain shareholder approval for its acquisition because the deal would generate millions of dollars in fees for Resolute Holdings and the Individual Defendants named in the lawsuit. Then, on March 12, 2026, GPGI announced fourth quarter 2025 and fiscal year 2025 results, reporting compressed margins for Husky management attributed to a product mix shift towards lower margin new system sales, increased investments in personnel and product prototyping, and increased overhead for ramping up to deliver future sales. In response, the price of GPGI shares declined by $2.19 per share, or over 11%, from $19.74 per share on March 11, 2026, to close at $17.55 per share on March 12, 2026.
On May 7, 2026, GPGI reported first quarter 2026 results, revealing that Husky’s Adjusted Net Sales were $290.8 million, down 5.2% year-over-year, and its Adjusted EBITDA was $38 million, down 40.2% year-over year. Additionally, GPGI cut 2026 guidance and lowered Adjusted Net Sales from an initial range of $2.183 billion to $2.228 billion to a range of $1.95 billion to $2.10 billion, and lowered Adjusted EBITDA from an initial range of $620 million to $650 million to a range of $550 million to $610 million. In response, the price of GPGI shares declined by $4.52 per share, or nearly 26%, from $17.46 per share on May 6, 2026, to close at $12.94 per share on May 7, 2026.
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The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Learn more about the lead plaintiff process and eligibility requirements here. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.
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What Should I Do? If you purchased or otherwise acquired GPGI securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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