Announcement • Sep 01

Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against GPGI, Inc

Robbins Geller Rudman & Dowd LLP announced that purchasers of GPGI, Inc. f/k/a CompoSecure, Inc. Class A common stock between November 3, 2025 and May 6, 2026, both dates inclusive (the “Class Period”), have until Monday, September 14, 2026 to seek appointment as lead plaintiff of the GPGI class action lawsuit. City of Warren Police and Fire Retirement System v. GPGI, Inc., No. 26-cv-05951 (S.D.N.Y.), the GPGI class action lawsuit charges GPGI, certain of GPGI’s top executive officers and directors, as well as Resolute Holdings Management, Inc. with violations of the Securities Exchange Act of 1934. GPGI, Inc. has historically operated a financial technology and security business. On November 3, 2025, CompoSecure announced its acquisition of Husky Technologies Limited (“Husky”), a manufacturer and provider of plastic injection molding equipment, systems, and services used to manufacture plastics products, such as water bottles and medical devices (the “Husky Acquisition”). The GPGI class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) defendants had materially overstated the value of Husky; (ii) Husky was not on track to achieve the revenue and Adjusted EBITDA targets provided in the proxy statement and such targets lacked a reasonable basis in objective fact; (iii) a primary motivation of the Husky Acquisition was to generate millions of dollars in fees for Resolute Holdings and the individual defendants, rather than to create long-term value for CompoSecure shareholders; and (iv) as a result of the above, defendants had materially misrepresented the business, prospects, and expected financial results of GPGI and Husky as a combined business. On March 12, 2026, GPGI announced Fourth Quarter 2025 and Fiscal Year 2025 earnings and disclosed that Husky had $520.8 million in Fourth Quarter 2025 net sales (up 6.1% year-over-year) and $1.5687 billion in Fiscal Year 2025 net sales (up 5% year-over-year). GPGI further disclosed that Husky had Pro Forma Adjusted EBITDA of $136.1 million in Fourth Quarter 2025 (down 5.4% year-over-year) and $373.4 million in Fiscal Year 2025 (down 3% year-over-year). Notably, Husky’s Pro Forma Adjusted EBITDA margins for Fourth Quarter 2025 compressed by 318 basis points from 29.3% to 26.1%. On this news, the price of GPGI stock fell 16% over two trading days. Then, on May 7, 2026, GPGI reported its First Quarter 2026 financial results, revealing that Husky’s Pro Forma Adjusted Net Sales were just $290.8 million, down 5.2% year-over-year, and its Pro Forma Adjusted EBITDA fell to $38 million, down 40.2% year-over year. Additionally, GPGI cut 2026 guidance, with its Pro Forma Adjusted Net Sales lowered from an initial range of $2.183 billion to $2.228 billion to a range of $1.95 billion to $2.10 billion, and its Pro Forma Adjusted EBITDA lowered from an initial range of $620 million to $650 million to a range of $550 million to $610 million. On this news, the price of GPGI stock fell nearly 26%. The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.

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