The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Compass Group Diversified Holdings, LLC(CODI) Shareholders

1. CODI faces a class action lawsuit due to undisclosed financial issues. 2. Internal controls over financial reporting were allegedly ineffective at CODI. 3. Lugano Holding's financial discrepancies contributed to misleading investor information. 4. The stock price dropped from $17.25 to $6.55 following the news. 5. Shareholders can register for potential recovery from losses incurred.

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FAQ

Why Very Bearish?

The significant stock price drop following allegations indicates severe loss of investor confidence. Historical precedents show that trust issues can lead to prolonged downturns in stock value, as similar cases have affected companies like Wells Fargo and General Electric after scandals.

How important is it?

The information directly relates to CODI's financial health and investor trust, influencing trading behavior significantly. The allegation of misleading financial practices can deter new investments.

Why Short Term?

Immediate effects of the lawsuit and stock price drop may impact trading. However, if CODI addresses internal issues, recovery could be feasible in the longer term.

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LUGO CODI

NEW YORK, June 19, 2025

/PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Compass Group Diversified Holdings, LLC (NYSE: CODI).

Shareholders who purchased shares of CODI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.

CONTACT US HERE:

https://securitiesclasslaw.com/securities/compass-diversified-loss-submission-form/?id=153516&from=4

CLASS PERIOD: May 1, 2024 to May 7, 2025

ALLEGATIONS:

According to the complaint, throughout the class period, defendants failed to disclose to investors that Compass lacked effective internal controls over its financial reporting; that Compass failed to disclose critical information regarding Lugano Holding, Inc. ("Lugano") which kept undisclosed financing arrangements and exhibited irregularities in its sales, cost of sales, inventory and accounts receivable; and that, as a result of the foregoing, defendants' positive statements about the Company's financial reporting were materially misleading. The truth emerged on May 7, 2025, after the market closed, the Company announced that its financial statements for fiscal 2024 could no longer be relied upon due to an ongoing internal investigation into its subsidiary, Lugano. Specifically, Compass reported that its Audit Committee launched an investigation over "concerns about how Lugano was potentially financing inventory." The Company also announced that it intends to delay the filing of its first quarter 2025 Form 10-Q. Further, effective May 7, 2025, Lugano's founder and CEO, Moti Ferder, resigned from Lugano and will not receive any severance compensation. Following this news, the price of Compass' common stock declined dramatically. From a closing market price of $17.25 per share on May 7, 2025 to $6.55 per share on May 8, 2025.

DEADLINE: July 8, 2025 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/compass-diversified-loss-submission-form/?id=153516&from=4

NEXT STEPS FOR SHAREHOLDERS:

Once you register as a shareholder who purchased shares of CODI during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 8, 2025. There is no cost or obligation to you to participate in this case.

WHY GROSS LAW FIRM?

The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:

The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018

Email: info@grosslawfirm.com
Phone: (646) 453-8903

SOURCE The Gross Law Firm