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Compass Minerals wins preliminary approval of derivative settlement

Story Highlights
  • Compass moved to settle derivative suits alleging misleading fire retardant disclosures from 2023-2024.
  • Court preliminarily approved a settlement mandating governance reforms and insurer-funded legal fees.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Compass Minerals wins preliminary approval of derivative settlement

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Compass Minerals International ( (CMP) ) just unveiled an announcement.

On October 24, 2025, Compass Minerals International, acting as a nominal defendant, entered into a stipulation to settle two stockholder derivative lawsuits in the U.S. District Court for the District of Kansas that alleged certain current and former directors and officers breached fiduciary duties between February 8, 2023, and March 25, 2024, by causing the company to issue misleading disclosures about safety testing and contract prospects for its magnesium chloride-based aerial fire retardants. On December 10, 2025, the court granted preliminary approval for the settlement, which, if finally approved at a February 20, 2026 hearing, will dismiss the actions with prejudice, require Compass to adopt and maintain specified corporate governance reforms, and provide for $850,000 in legal fees to be paid by the company’s insurers and potential service awards to the two plaintiffs, underscoring both the governance implications for Compass and the absence of direct monetary recovery for shareholders.

The most recent analyst rating on (CMP) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Compass Minerals International stock, see the CMP Stock Forecast page.

Spark’s Take on CMP Stock

According to Spark, TipRanks’ AI Analyst, CMP is a Neutral.

Compass Minerals International’s overall stock score reflects significant financial challenges, particularly in profitability and leverage. While the earnings call indicates positive strategic initiatives and improvements in financial flexibility, the company’s valuation remains unattractive due to negative earnings. Technical indicators provide a neutral outlook, suggesting cautious optimism.

To see Spark’s full report on CMP stock, click here.

More about Compass Minerals International

Compass Minerals International, Inc. operates in the minerals industry, best known for producing salt and specialty mineral products, and serves a range of industrial, commercial and governmental customers in North America and other markets.

Average Trading Volume: 470,136

Technical Sentiment Signal: Hold

Current Market Cap: $820.1M

Find detailed analytics on CMP stock on TipRanks’ Stock Analysis page.

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