The legal action centers on allegations that the company, formerly known as CompoSecure, engaged in a scheme to misrepresent the value of Husky Technologies to secure shareholder approval for the acquisition. A February 2026 report by Jehosaphat Research claimed that GPGI overstated the firm's financials, specifically asserting that free cash flow figures were inflated by 90%. Subsequent financial reports confirmed significant declines in Husky’s performance, including a 40.2% drop in EBITDA during the first quarter of 2026, which prompted the company to slash its annual guidance.

Market reaction to these disclosures proved costly for shareholders. Following the March 12, 2026, announcement of disappointing fiscal results, GPGI stock dropped 11.09%. A steeper decline occurred on May 7, 2026, when shares plummeted 25.9% after the company revealed further operational setbacks and lowered expectations. The law firm Glancy Prongay Wolke & Rotter LLP is currently organizing the class action, targeting those who purchased securities between November 3, 2025, and May 6, 2026, to seek recovery for the alleged losses.