$48 Million Settlement Approved by Court

Last week, Chief United States District Judge Eric F. Melgren of the U.S. District Court for the District of Kansas approved a $48 million settlement in a securities fraud class action case against Compass Minerals. Robbins Geller Rudman & Dowd LLP and co-lead counsel represented plaintiffs Local 295 IBT Employer Group Welfare Fund and Retail Wholesale Department Store Union Local 338 Retirement Fund in the case.

Plaintiffs alleged Compass Minerals, a company that mines and produces essential minerals, made misleading statements about the cost of its operations at the Goderich underground rock salt mine in Ontario, Canada. The complaint also alleged defendants misrepresented the amount of salt Compass Minerals was able to produce using new equipment at Goderich and failed to disclose how production shortfalls were reasonably expected to reduce future operating income.

The SEC investigated similar claims and settled its case against Compass Minerals for $12 million, four times less than the recovery obtained by Robbins Geller.

“We’re pleased with the additional restitution we helped secure for the investors here, and we’re proud of the leadership our clients showed to ensure accountability,” said Darryl J. Alvarado, lead counsel for the investor class.

Robbins Geller attorneys Darryl J. Alvarado, Erin W. Boardman, Heather G. Geiger, and Joseph J. Tull and co-counsel represented plaintiffs Local 295 IBT Employer Group Welfare Fund and Retail Wholesale Department Store Union Local 338 Retirement Fund.

Local 295 IBT Employer Group Welfare Fund v. Compass Minerals International, Inc., No. 2:22-cv-02432-EFM-ADM (D. Kan.).