The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired GPGI, Inc. (“GPGI” or the “Company”) (NYSE: GPGI) Class A common stock between November 3, 2025 and May 6, 2026, inclusive (the “Class Period”). GPGI investors have until September 14, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR GPGI, INC. (GPGI) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@frankcruzlaw.com, by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.

What Happened?

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, Jehoshaphat 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.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Defendants had materially overstated the value of Husky; (2) that 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; (3) that 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 (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:

If you purchased GPGI common stock, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, CA 90067
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260721116569/en/

Law Offices of Frank R. Cruz Encourages GPGI, Inc. (GPGI) Shareholders To Inquire About Securities Fraud Class Action