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The Law Offices of Frank R. Cruz announces an investigation of GPGI, Inc. (“GPGI” or the “Company”) (NYSE: GPGI) on behalf of investors concerning the Company’s possible violations of federal securities laws.
What Is The Investigation About?
On August 7, 2024, GPGI, then known as CompoSecure, announced that investment firm Resolute Holdings (“Resolute”), intended to acquire a majority interest in the Company. That transaction was completed on September 17, 2024.
On January 12, 2026, CompoSecure, Inc. announced the completion of its acquisition of Husky Technologies Limited (“Husky”), and rebranded itself as GPGI.
On February 26, 2026, Jehosaphat Research published a report alleging, among other things, that GPGI had overstated the value of Husky in order to gain shareholder approval for the acquisition, stating that “[all] major aspects of the financials appear to be affected” including that free cash flow was overstated by 90%.
Then, on March 12, 2026, GPGI released fourth quarter and fiscal year 2025 financial results, disclosing that Husky saw its EBITDA decline 5.4% year-over-year in the quarter and 3% year-over-year for the full year.
On this news, GPGI’s stock price fell $2.19, or 11.09%, to close at $17.55 per share on March 12, 2026, thereby injuring investors.
Then, on April 22, 2026, a lawsuit was filed, alleging Resolute’s acquisition and control of CompoSecure and the Husky acquisition was part of a “a multistep scheme” to drain value from GPGI for the benefit of certain defendants.
Then, on May 7, 2026, GPGI released its first quarter 2026 financial results, disclosing that Husky’s net sales had declined 5.2% year-over-year, and its EBITDA fell 40.2% year-over year due to “oil and resin price volatility and continued tariff uncertainty[,]” “and customers delay[ing] accepting shipments and placing orders.” The Company also slashed its 2026 guidance.
On this news, GPGI’s stock price fell $4.52, or 25.9%, to close at $12.94 per share on May 7, 2026, thereby injuring investors further.
If you suffered a loss on your GPGI, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.
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