The litigation, titled City of Warren Police and Fire Retirement System v. GPGI, Inc., centers on claims that the firm—formerly known as CompoSecure—materially overstated the value of Husky Technologies Limited. According to the complaint, these misrepresentations were intended to secure shareholder approval for the acquisition, while allegedly prioritizing fees for Resolute Holdings over the long-term interests of investors. The suit contends that the company's financial targets lacked a reasonable basis and that key performance indicators were obscured throughout the class period.
Financial instability became apparent following a February 2026 report from Jehosaphat Research, which alleged that Husky's free cash flow had been overstated by 90%. Subsequent disclosures regarding declining EBITDA and slashed 2026 guidance triggered significant market volatility. On March 12, 2026, shares fell 16.4% following poor quarterly results, and a further 25.9% drop occurred on May 7, 2026, after the company revealed net sales declines. Kessler Topaz Meltzer & Check, LLP is currently advising affected investors on the process for seeking lead plaintiff status, which must be completed by September 14, 2026.
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