Compass Minerals $4.9M Securities Class Action Settlement

Compass Minerals International Inc.

Consumers who purchased Compass Minerals International Inc. securities between Feb. 8, 2023, and March 26, 2024, may qualify to claim a cash payment from a class action settlement.

Compass Minerals International Inc. agreed to pay $4.9 million to resolve a class action lawsuit alleging it and certain executives made false and misleading statements about its fire retardant business during the class period.

Who can file a Compass Minerals claim?

The class includes all individuals and entities who purchased or otherwise acquired Compass Minerals securities, including common stock, call options or sold put options, between Feb. 8, 2023, and March 26, 2024.

How much can class members receive?

Pro rata payment: The gross settlement fund is $4,900,000. The settlement administrator will distribute this amount to eligible class members after deductions for attorneys’ fees, litigation expenses, administrative costs and taxes.

The estimated average recovery is $0.39 per damaged share before deductions and $0.25 per share after.

Each class member's actual recovery depends on:

The total number of valid claims submitted
The amount of recognized loss for each claimant
The dates and prices of the class member's purchases and sales of Compass Minerals securities
The type of security (common stock, call options or put options)

If the total amount of valid claims exceeds the net settlement fund, each claim will be reduced on a pro rata basis.

For common stock, recognized loss is calculated as follows:

For shares purchased and sold during the class period, recognized loss per share is the lesser of (1) the inflation per share upon purchase minus the inflation per share upon sale or (2) the purchase price minus the sales price.
For shares purchased during the class period and sold between March 27, 2024, and June 24, 2024, recognized loss is the lesser of (1) the inflation per share upon purchase or (2) the difference between the purchase price and the average closing share price as of the date of sale.
For shares purchased during the class period and held as of the close of trading on June 24, 2024, recognized loss is the lesser of (1) the inflation per share upon purchase or (2) the purchase price minus $13.12 (the mean daily closing price during the 90-day period after the corrective disclosure).

For call options, recognized loss is calculated as follows:

If the call option was not held at the opening of trading on at least one of the corrective disclosure dates, recognized loss is $0.
If the call option was held through one or more corrective disclosure dates:

If sold before March 26, 2024, recognized loss is purchase price minus sale price.
If exercised before March 26, 2024, recognized loss is purchase price minus intrinsic value at exercise.
If expired unexercised before March 26, 2024, recognized loss is purchase price.
If held as of March 26, 2024, recognized loss is purchase price minus intrinsic value as of March 26, 2024.

For put options, recognized loss is calculated as follows:

If the put option was not open at the opening of trading on at least one corrective disclosure date, recognized loss is $0.
If the put option was sold and still outstanding at the opening of trading on one or more corrective disclosure dates:

If repurchased before March 26, 2024, recognized loss is purchase price minus sale price.
If exercised before March 26, 2024, recognized loss is intrinsic value at exercise minus sale price.
If expired unexercised before March 26, 2024, recognized loss is $0.
If still outstanding as of March 26, 2024, recognized loss is intrinsic value as of March 26, 2024, minus sale price.

The settlement administrator will not pay out claims where the potential distribution amount is less than $10.

How to claim a class action payment

Class members can can file a claim online or download, print, complete and mail a PDF claim form to the settlement administrator. The claim deadline is Oct. 7, 2025.

Settlement administrator's mailing address: Compass Minerals Securities Litigation c/o Strategic Claims Services, 600 N. Jackson St., Ste. 205 P.O. Box 230 Media, PA 19063

Documentation and proof

Claimants must provide documentation to support their claim. Acceptable proof includes:

Stockbroker confirmation slips
Account statements
Other documents showing the details of each purchase, sale or acquisition of Compass Minerals securities during the class period

Class members who do not have these documents should obtain them from their broker or tax advisor. Failure to provide documentation may result in claim rejection.

For each transaction, class members must provide the trade date, number of shares or contracts, price per share or contract and total cost or amount received.
Those acting in a representative capacity (e.g., executor or trustee), must provide proof of authority to act on behalf of the class member.

Payout options

Paper check

$4.9 million settlement fund brakdown

The $4,900,000 settlement fund include:

Settlement administration costs: To be determined
Attorneys’ fees: Up to $1,633,333.33
Attorneys’ expenses: Up to $55,000
Service awards to class representatives: Up to $17,500 in total
Payments to eligible class members: The remainder of the fund

Important dates

Deadline to file a claim: Oct. 7, 2025
Exclusion deadline: Oct. 7, 2025
Fairness hearing: Nov. 18, 2025

When is the Compass Minerals securities litigation payout date?

The settlement administrator will distribute payments to class members after the court grants final approval of the settlement and processes all claims.

Why did this class action settlement happen?

The class action lawsuit alleged Compass Minerals and certain executives made materially false and misleading statements about the company’s fire retardant business. The plaintiffs claimed these misrepresentations inflated the price of Compass Minerals securities, causing investors financial harm when the truth was revealed.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the expense and uncertainty of continued litigation. The settlement provides compensation to investors without any admission of liability.