NEW YORK, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky, LLP (www.aftlaw.com), a nationally recognized law firm focusing on protecting investors’ rights, informs shareholders of the filing of a class action alleging that GPGI, three of its executive officers and directors, and Resolute Holdings Management, Inc. (“Resolute”), which manages GPGI’s day-to-day operations and corporate strategy, violated the Securities Exchange Act of 1934. The case is captioned City of Warren Police and Fire Retirement System v. GPGI, Inc., No. 26-cv-05951 (S.D.N.Y.)
Investors who purchased GPGI Class A common stock between November 3, 2025, and May 6, 2026, have until September 14, 2026, to seek appointment as lead plaintiff.
CASE ALLEGATIONS: The lawsuit alleges that from November 3, 2025 to May 6, 2026, GPGI, its executives, and Resolute made false and misleading statements, including that: (1) GPGI materially overstated the value of Husky Technologies Limited (“Husky”); (2) Husky was not on track to achieve the financial targets provided in GPGI’s proxy statement, which targets lacked a reasonable basis; (3) a primary motivation of the Husky acquisition was to generate millions of dollars in fees for Resolute and defendants, rather than creating long-term value for shareholders; and (4) as a result, defendants’ statements about GPGI’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 26, 2026, short seller Jehoshaphat Research announced and published a new report (the “JR Report”) claiming GPGI had overstated the value of Husky in order to obtain shareholder approval for the Husky Acquisition. The JR Report claimed that even a large acquisition adding $500 million in incremental Adjusted EBITDA to GPGI could break even or generate a profit for the Cote Family, despite destroying up to $610 million in GPGI shareholder value.
On March 12, 2026, GPGI disclosed its fourth quarter 2025 and fiscal year 2025 financial results and held an earnings call. GPGI also disclosed Husky’s performance for the same period, including compressed margins. In response to the news, the price of GPGI stock fell from a closing price of $19.74 per share on March 11, 2026, to $16.51 per share on March 13, 2026, a decline of $3.23 per share (16%) over two trading days on abnormally high trading volume.
On March 16, 2026, at a JPMorgan Industrials Conference, defendants highlighted the Husky Acquisition. Defendants disclosed they were surprised about the stock price drop days earlier, and recommended investors buy GPGI stock.
On May 7, 2026, GPGI reported its first quarter 2026 results, including disappointing results by GPGI’s Husky segment, with its Pro Forma Adjusted EBITDA falling 40.2% year-over year to $38 million. GPGI also cut guidance, blaming unanticipated market headwinds. In response to the news, the price of GPGI common stock closed at $12.94 per share on May 7, 2026, down $4.52 per share (nearly 26%) on abnormally high volume. However, on the accompanying earnings call that day, defendants admitted to underlying demand problems, acknowledging customers were not accepting orders on Husky’s preferred timetable with no clear end to these challenges in sight.
LEAD PLAINTIFF DEADLINE: Lead plaintiff motions for the GPGI class action lawsuit must be filed with the court no later than September 14, 2026. If you suffered substantial losses by investing in GPGI securities and would like to discuss serving as lead plaintiff of the GPGI class action lawsuit, with no cost or obligation to you, please contact Jack Fruchter (jfruchter@aftlaw.com or (212) 634-0602) or Michael Klein (mklein@aftlaw.com or (212) 634-0608).
Abraham, Fruchter & Twersky, LLP (www.aftlaw.com) is a law firm that has extensive experience in litigating securities law violations on behalf of investors. Abraham, Fruchter & Twersky, LLP is based in New York and maintains a California office.
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