StockNews.AI
CODI
StockNews.AI
99 days

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Compass Diversified Holdings (CODI)

1. A class action lawsuit has been filed against Compass Diversified Holdings. 2. The lawsuit claims false statements regarding financial irregularities in a subsidiary. 3. Compass announced non-reliance on 2024 financial statements due to these issues. 4. Stock price dropped significantly following the announcement of investigation results. 5. Company's 2025 Q1 filing is delayed amid ongoing internal investigations.

4m saved
Insight
Article

FAQ

Why Very Bearish?

The lawsuit and restatement of financials signal major risks, historically leading to long-term declines in stock prices post-restatement.

How important is it?

The nature of the allegations could significantly damage investor confidence and lead to loss of market value.

Why Long Term?

Financial restatements often lead to regulatory scrutiny, investor distrust, and protracted legal issues, affecting CODI's future performance.

Related Companies

LUGANOSPACCODI
NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquire Compass Diversified Holdings (“Compass” or the “Company”) (NYSE: CODI) securities between May 1, 2024 and May 7, 2025, both dates inclusive (the “Class Period”). The Complaint alleges that Defendants made false and/or misleading statements because of certain unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Compass’ subsidiary, Lugano Holding, Inc. The Complaint also alleges that 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., revealing that the Company “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, 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.” The Company’s press release also announced that the Company intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of the Company’s stock dropped. Investors who purchased or otherwise acquired shares of Compass should contact the Firm prior to the July 8, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com. Please visit our website at http://www.gme-law.com for more information about the firm.

Related News