GPGI Class Action Lawsuit: 8 Frequently Asked Questions [2026]

• If you bought a security during the alleged class period and suffered a loss, you are generally automatically included in the class. You don’t have to take any action unless you want to file a claim for recovery later.

• You may be notified of a class action by mail if you are an eligible class member.

• You may be able to become a lead plaintiff by applying within 60 days of the first lawsuit being announced.

• If you believe you may have a claim, you can contact a securities class action law firm for guidance. 855/846-6529 or via e-mail at [email protected].(24/7/365).

4. What Are the Allegations in the GPGI Class Action Lawsuit?

GPGI, Inc. has historically operated a financial technology and security business.  On November 3, 2025, CompoSecure announced its acquisition of Husky Technologies Limited (“Husky”), a manufacturer and provider of plastic injection molding equipment, systems, and services used to manufacture plastics products, such as water bottles and medical devices (the “Husky Acquisition”).

The GPGI class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:

• Defendants had materially overstated the value of Husky;
• Husky was not on track to achieve the revenue and Adjusted EBITDA targets provided in the proxy statement and such targets lacked a reasonable basis in objective fact;
• A primary motivation of the Husky Acquisition was to generate millions of dollars in fees for Resolute Holdings and the individual defendants, rather than to create long-term value for CompoSecure shareholders; and
• As a result of the above, defendants had materially misrepresented the business, prospects, and expected financial results of GPGI and Husky as a combined business.

On March 12, 2026, GPGI announced 4Q25 and FY25 earnings and disclosed that Husky had $520.8 million in 4Q25 net sales (up 6.1% year-over-year) and $1.5687 billion in FY25 net sales (up 5% year-over-year).  GPGI further disclosed that Husky had Pro Forma Adjusted EBITDA of $136.1 million in 4Q25 (down 5.4% year-over-year) and $373.4 million in FY25 (down 3% year-over-year).

1. Notably, Husky’s Pro Forma Adjusted EBITDA margins for 4Q25 compressed by 318 basis points from 29.3% to 26.1%.  On this news, the price of GPGI stock fell 16% over two trading days.
2. Then, on May 7, 2026, GPGI reported its 1Q26 financial results, revealing that Husky’s Pro Forma Adjusted Net Sales were just $290.8 million, down 5.2% year-over-year, and its Pro Forma Adjusted EBITDA fell to $38 million, down 40.2% year-over year.
3. Additionally, GPGI cut 2026 guidance, with its Pro Forma Adjusted Net Sales lowered from an initial range of $2.183 billion to $2.228 billion to a range of $1.95 billion to $2.10 billion, and its Pro Forma Adjusted EBITDA lowered from an initial range of $620 million to $650 million to a range of $550 million to $610 million.

On this news, the price of GPGI stock fell nearly 26% according to the GPGI class action lawsuit.

5.  What Are the Rights of Investors in the GPGI Class Action Lawsuit?