The complaint alleges that throughout the class period, defendants repeatedly assured investors that upgrades at the Goderich mine remained on track to reduce costs and improve operating results at a time when costs at the mine were actually increasing. Defendants misrepresented production amounts from using new equipment that were part of the upgrades, as well as ongoing production shortfalls and the associated impacts on future operating income.
On October 23, 2018, Compass pre-announced Q3 2018 financial results that were significantly below expectations and lowered its outlook for the remainder of the year. Compass shares fell by more than 30% over the next two trading days.
Then on November 19, 2018, Compass announced the abrupt termination of CEO, defendant Francis Malecha.
On September 23, 2022, the Securities and Exchange Commission announced charges against Compass for misleading investors.
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