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COMPASS ALERT: Bragar Eagel & Squire, P.C. is Investigating Compass Diversified on Behalf of Compass Stockholders and Encourages Investors to Contact the Firm

1. Bragar Eagel & Squire investigates Compass for possible securities law violations. 2. Compass disclosed non-reliability of its 2024 financial statements. 3. Irregularities found in subsidiary Lugano's practices led to CEO's resignation. 4. Compass shares dropped over 59% following disclosure news. 5. Investors may have claims due to misleading statements and nondisclosures.

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FAQ

Why Very Bearish?

The 59% drop indicates a severe loss of investor confidence. This mirrors past incidents in companies with similar disclosure issues, leading to prolonged negative price impacts.

How important is it?

The ongoing investigation poses significant risk to investor trust and market valuation of CODI. Legal challenges can affect trading patterns and stock performance notably in the immediate term.

Why Short Term?

The immediate impact is visible through stock price movement, likely persisting until resolution of investigations. Similar cases have shown shorter-term effects but can linger if findings are severe.

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LUGN
NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Compass Diversified (“Compass” or the “Company”) (NYSE:CODI) on behalf of Compass stockholders. Our investigation concerns whether Compass has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Compass disclosed on May 7, 2025, that its financial statements for fiscal year 2024 should not be relied upon due to an ongoing investigation of its subsidiary, Lugano Holding, Inc. According to the Company, its investigation ““has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices,” adding that, “Effective 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.” Based on this news, shares of Compass fell by more than 59% in afternoon trading on the next day. If you purchased or otherwise acquired Compass shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes. Follow us for updates on LinkedIn, X, and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn and X. Contact Information: Bragar Eagel & Squire, P.C.Brandon Walker, Esq.Marion Passmore, Esq.(212) 355-4648investigations@bespc.comwww.bespc.com

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