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CODI INVESTIGATION NOTICE: Robbins Geller Rudman & Dowd LLP Announces Investigation into Compass Diversified Holdings and Encourages Investors with Substantial Losses or Witnesses with Relevant Information to Contact the Firm

1. Investigation launched into potential violations of federal securities laws for CODI. 2. CODI's financial statements for 2024 may require restatement due to irregularities. 3. CEO of subsidiary Lugano Holding resigned amid ongoing investigation and issues. 4. CODI's stock price dropped approximately 62% following these disclosures.

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FAQ

Why Very Bearish?

The substantial stock price drop and restatement of financials indicate severe investor loss. Historical similar situations often lead to prolonged negative market sentiment.

How important is it?

The ongoing investigation and financial restatement are critical issues that could severely impact CODI's market reputation and stock value.

Why Short Term?

Immediate impacts from the announcement are expected, affecting investor confidence rapidly. However, long-term effects depend on the investigation and potential corrective actions.

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LUGSBUXAMZN
SAN DIEGO, May 09, 2025 (GLOBE NEWSWIRE) -- The law firm of 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 info@rgrdlaw.com. 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            info@rgrdlaw.com

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