The lawsuit, City of Warren Police and Fire Retirement System v. GPGI, Inc., filed in the Southern District of New York, targets GPGI, its executive leadership, and Resolute Holdings Management, Inc. Plaintiffs claim defendants overstated the value of Husky and failed to disclose that the acquisition was primarily intended to generate fees for insiders rather than provide long-term shareholder value.
Investors File Class Action Against GPGI Over Husky Acquisition
Investors who purchased GPGI, Inc. stock between November 3, 2025, and May 6, 2026, face a September 14 deadline to seek lead plaintiff status in a newly filed class action lawsuit. The litigation alleges that the company misled shareholders regarding the financial health and valuation of its acquisition, Husky Technologies Limited.
Financial discrepancies emerged following the November 2025 acquisition. By March 2026, GPGI reported a significant compression in Husky’s EBITDA margins, triggering a 16% drop in stock price. Further volatility followed in May 2026, when the company revealed a 40.2% year-over-year decline in Husky’s Pro Forma Adjusted EBITDA and slashed its 2026 financial guidance. This disclosure led to an additional 26% decline in GPGI’s share price. Investors seeking to participate in the case are represented by Robbins Geller Rudman & Dowd LLP.
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