The lawsuit, City of Warren Police and Fire Retirement System v. GPGI, Inc., filed in the Southern District of New York, accuses the company, its top executives, and Resolute Holdings Management of violating the Securities Exchange Act of 1934. Plaintiffs allege that the defendants materially overstated the value of Husky Technologies and misrepresented the rationale behind the acquisition. The complaint suggests the deal was prioritized to generate fees for stakeholders rather than to provide long-term value for shareholders.

Financial performance issues surfaced following the acquisition. When GPGI reported its fiscal 2025 results on March 12, 2026, it revealed compressed margins at Husky, triggering a 16% stock decline over two days. The situation intensified on May 7, 2026, when the company reported a significant drop in first-quarter earnings and slashed its 2026 financial guidance. That disclosure prompted a further 26% drop in share price. Robbins Geller Rudman & Dowd LLP is managing the case, and investors with substantial losses are being invited to participate in the legal proceedings.