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CODI INVESTIGATION ALERT: Investigation Launched into Compass Diversified Holdings and Attorneys Encourage Investors with Substantial Losses or Witnesses with Relevant Information to Contact Law Firm

1. Robbins Geller is investigating potential securities law violations by CODI. 2. CODI's financial statements for 2024 require restatement due to irregularities. 3. Concerns were raised about Lugano's financing and inventory practices. 4. CODI's stock price fell by 62% following the announcement. 5. The investigation could lead to further complications for CODI.

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FAQ

Why Very Bearish?

The significant drop in stock price suggests severe investor loss confidence, reminiscent of past fraud investigations causing losses.

How important is it?

The investigation could expose major risks and affect investor trust, impacting stock performance.

Why Short Term?

Initial legal investigations often result in immediate stock reactions, seen historically in similar circumstances.

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, /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Compass Diversified Holdings (NYSE: CODI) focused on whether Compass Diversified and certain of its top executives made false and/or misleading statements and/or failed to disclose material information to investors. If you have information that could assist in the Compass Diversified investigation or if you are a Compass Diversified investor who suffered a loss and would like to learn more, you can provide your information here: https://www.rgrdlaw.com/cases-compass-diversified-holdings-investigation-codi.html You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. THE COMPANY: Compass Diversified is an owner of middle market branded consumer and industrial businesses, including Lugano Holding, Inc. – a designer, manufacturer, and marketer of high-end jewelry. THE REVELATION: On May 7, 2025, Compass Diversified issued a press release entitled "Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc." Compass Diversified further disclosed that "[t]he Audit Committee of CODI's Board of Directors promptly launched an investigation after CODI's senior leadership was made aware of concerns about how Lugano was potentially financing inventory" and that "[t]he investigation . . . is ongoing but has preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices." Moreover, Compass Diversified also revealed that "the Audit Committee of CODI's Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon" and that "[e]ffective May 7, 2025, Lugano's founder and CEO, Moti Ferder, resigned from all of his positions at Lugano and will not receive any severance compensation." Following this news, the price of Compass Diversified stock fell approximately 62%. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information: https://www.rgrdlaw.com/services-litigation-securities-fraud.html Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.  Contact:            Robbins Geller Rudman & Dowd LLP             J.C. Sanchez, Jennifer N. Caringal            655 W. Broadway, Suite 1900, San Diego, CA 92101            800-449-4900            [email protected]  SOURCE Robbins Geller Rudman & Dowd LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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