A class action securities fraud lawsuit has been filed against GPGI Inc by several law firms, alleging the company overstated the value of Husky Technologies during its acquisition and misled investors. GPGI Inc, formerly known as CompoSecure and operating in the fintech and security sector, changed its name after completing the acquisition of Husky in January 2026.
The lawsuit covers investors who purchased GPGI Inc shares between November 3, 2025, and May 6, 2026. The complaint alleges that the defendants significantly overvalued Husky in the proxy statement, with revenue and adjusted EBITDA targets lacking an objective factual basis. It further claims a primary motive for the acquisition was to generate millions in fees for the related party Resolute Holdings and individual defendants, rather than creating long-term shareholder value.
On February 26, 2026, short-seller Jehoshaphat Research published a report accusing GPGI Inc of inflating Husky's value to secure shareholder approval for the deal. Following the report's release, GPGI Inc's stock price fell from $23.12.
Subsequent financial disclosures confirmed market concerns. The earnings report released on March 12 showed Husky's fourth-quarter adjusted EBITDA margin contracted to 26.1% from 29.3%, causing GPGI Inc's stock to drop 16% over two days. On May 7, the company disclosed that Husky's adjusted net sales for the first quarter fell 5.2% year-over-year, while adjusted EBITDA plummeted 40.2%. GPGI Inc also significantly lowered its full-year 2026 guidance, leading to an additional single-day stock price decline of nearly 26%.
Investors wishing to serve as lead plaintiff must apply to the court by September 14 or 15, 2026. Several law firms are encouraging affected investors to seek consultation.
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