NEW ORLEANS, May 16, 2025
PRNewswire -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until July 8, 2025 to file lead plaintiff applications in a securities class action lawsuit against Compass Diversified Holdings (NYSE: CODI), if they purchased the Company's securities between May 1, 2024 and May 7, 2025, inclusive (the "Class Period"). This action is pending in the United States District Court for the Central District of California.
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About the Lawsuit
Compass and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On May 7, 2025, the Company 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.," disclosing 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." The Company 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."
On this news, the price of Compass' shares plummeted approximately 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025.
The case is Matthews v. Compass Group Diversified Holdings, Inc., et al., No. 25-cv-981.
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