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BREAKING: Compass Diversified (CODI) Shares Down Over 60%; Securities Fraud Investigation by Block & Leviton Could Allow Investors to Recover Losses

1. CODI shares dropped over 60% due to financial statement irregularities. 2. Internal investigation into subsidiary Lugano Holding revealed significant accounting issues. 3. Lugano's CEO resigned; Q1 2025 filing delayed amid ongoing scrutiny. 4. Block & Leviton is investigating potential securities law violations. 5. Investors can seek recovery from losses through legal action.

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FAQ

Why Very Bearish?

The drastic decline of CODI's share price reflects a loss of investor confidence, driven by substantial financial irregularities and governance issues. Historical examples show that such severe situations can lead to long-term repercussions for stock prices, as seen in cases like Enron and Lehman Brothers.

How important is it?

The article indicates significant operational and financial instability within CODI, likely leading to sustained negative sentiment and potential future litigation risks. The nature of the issues affects investor trust and market position.

Why Long Term?

Given ongoing investigations and potential legal actions, CODI may face long-term challenges in regaining investor trust and stabilizing its financials. Previous instances of accounting scandals have taken years for companies to recover from.

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LUGOENRNLEHMQ
BOSTON, May 08, 2025 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Compass Diversified Holdings (NYSE: CODI) for potential securities law violations. Investors who have lost money in their Compass Diversified Holdings investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/codi. What is this all about? Shares of Compass Diversified Holdings fell over 60% in intraday trading on May 8, 2025, following the company's disclosure that its 2024 financial statements should no longer be relied upon due to irregularities at its subsidiary, Lugano Holding, Inc. Compass launched an internal investigation into Lugano's financial reporting practices and identified "irregularities in sales, cost of sales, inventory, and accounts receivable," as well as "unrecorded financing arrangements." The company has announced a delay in filing its Q1 2025 Form 10-Q following the disclosure, and Lugano's founder and CEO has resigned without compensation. Who is eligible? Anyone who purchased Compass Diversified Holdings common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more. What is Block & Leviton doing? Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money. What should you do next? If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at shareholders@blockleviton.com, or by phone at (888) 256-2510. Whistleblower? If you have non-public information about Compass Diversified Holdings, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at shareholders@blockleviton.com or by phone at (888) 256-2510. Why should you contact Block & Leviton? Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website www.blockleviton.com, call (888) 256-2510 or email shareholders@blockleviton.com with any questions. This notice may constitute attorney advertising. CONTACT:BLOCK & LEVITON LLP260 Franklin St., Suite 1860Boston, MA 02110Phone: (888) 256-2510Email: shareholders@blockleviton.com

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