Compass Minerals Settled With Investors Over Goderich Mine Failures – What You Should Know

Court: D. Kansas

Case: 2:22-cv-02432

Compass Minerals CMP has reached a settlement with investors who claim the company misled them about promised cost savings and operational performance at its Goderich salt mine. The settlement, announced in February 2025, follows years of production shortfalls, rising expenses, and a 30% stock plunge tied to failed mine upgrades.

What Really Happened at the Goderich Mine

In October 2017, Compass Minerals unveiled upgrades to its Goderich salt mine in Ontario, promoting a new continuous mining system expected to save $30 million annually starting in 2018.

However, production fell short by 1.5 million tons in 2017 and even more—2.4 million tons—in 2018. Equipment underperformance was the main culprit, dragging output far below the 7.5 million-ton target, driving costs up instead of down.

By late 2018, the company publicly admitted that the system had failed to deliver its promised savings, and the stock dropped over 30%.

Investors Push Back—and Get Results

In 2019, the SEC launched an investigation into the company’s disclosures, and Compass later paid a $12 million penalty in 2022 for falsely claiming cost savings it knew weren’t materializing. That same year, investors filed a lawsuit, accusing the company of misleading them about the mine’s performance and financial impact.

The Deal That Finally Closed the Chapter

Now, Compass Minerals has agreed to a $48M settlement to resolve investor claims. While the company hasn’t admitted wrongdoing, the settlement offers a path to compensation for affected shareholders. The claiming deadline is in 2 weeks. You can check for the latest updates and file a claim here.