Compass Minerals settles derivative lawsuits for $850,000

Compass Minerals International Inc. (NYSE: CMP) announced a proposed settlement of stockholder derivative lawsuits for $850,000 in attorney fees and expenses to be paid by the company's insurers.

The settlement resolves two derivative actions filed in U.S. District Court for the District of Kansas. The lawsuits alleged that company directors and officers breached fiduciary duties by making false statements about the safety testing of the company's magnesium chloride-based aerial fire retardants between February 2023 and March 2024.

According to the settlement agreement dated October 24, 2025, plaintiffs claimed the company overstated prospects for renewing a U.S. Forest Service contract for the 2024 fire season when testing had not confirmed the fire retardants' safety.

The settlement requires Compass Minerals to adopt corporate governance reforms and procedures. The company's insurers will pay $850,000 in legal fees and expenses, with up to $1,500 each going to two plaintiffs as service awards.

A court hearing on the settlement's approval is scheduled for February 20, 2026, at 1:00 p.m. in Wichita, Kansas. Current stockholders who owned shares as of October 24, 2025, can object to the settlement by filing written objections with the court by January 30, 2026.

The defendants denied all wrongdoing but agreed to settle to avoid litigation costs and risks. The actions will be dismissed with prejudice if the court approves the settlement.

Compass Minerals, based in Overland Park, Kansas, is a global provider of essential minerals.

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