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SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Compass Diversified

1. Faruqi & Faruqi is investigating claims against Compass Diversified (CODI). 2. The company faces allegations of false financial reporting and inadequate internal controls. 3. Lugano Holdings, a subsidiary, has irregularities affecting CODI's financial reliability. 4. After revealing issues, CODI stock fell by 8% in after-hours trading. 5. Investors are encouraged to discuss their legal rights by July 8, 2025.

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FAQ

Why Very Bearish?

The stock's significant drop (8%) suggests major investor concerns about CFO mismanagement. Past similar events in companies often led to protracted legal battles, negatively impacting shares.

How important is it?

The allegations directly involve CODI, with potential implications for future earnings and investor confidence. Ongoing legal issues will likely influence stock performance severely.

Why Long Term?

Legal actions may take years, leading to continuous volatility. Investors could remain wary until clarity on operations and financial health emerges.

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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Compass To Contact Him Directly To Discuss Their Options If you purchased or acquired securities in Compass between May 1, 2024 and May 7, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, June 02, 2025 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Compass Diversified (“Compass” or the “Company”) (NYSE: CODI) and reminds investors of the July 8, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company’s subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable; (2) the irregularities and undisclosed details in Lugano Holdings, Inc.’s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement; (3) the Company failed to maintain adequate internal controls related to its financial statements; and (4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. On May 7, 2025, after the market closed, the Company disclosed that its financial statements for fiscal year 2024 should no longer be relied upon in response to an ongoing internal investigation into the Company’s subsidiary, Lugano Holding, Inc. The Company revealed that the investigation “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices” 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.” On this news, Compass Diversified stock price fell 8% during after-hours trading on May 7, 2025, thereby injuring investors. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Compass’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Compass Diversified investigation, go to www.faruqilaw.com/CODI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6e8a581f-1c68-4596-885c-0a64b18c9ae1

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