Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified Holdings due to alleged false and misleading statements related to financial irregularities in its subsidiary, Lugano Holding, Inc. [1][2] Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals or entities that purchased Compass securities between May 1, 2024, and May 7, 2025, inclusive [1] - The complaint alleges that the defendants made false statements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable [2] Group 2: Company Announcement - On May 7, 2025, Compass issued a press release stating it would not rely on its financial statements for fiscal 2024 due to identified irregularities in Lugano's financing, accounting, and inventory practices [3] - The Audit Committee concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon [3] - The company also announced a delay in filing its first quarter 2025 Form 10-Q, which led to a drop in the stock price [3] Group 3: Investor Information - Investors who acquired shares of Compass are encouraged to contact the law firm Gainey McKenna & Egleston before the lead plaintiff motion deadline of July 8, 2025 [4]

Core Viewpoint - A class action lawsuit has been filed against Compass Group Diversified Holdings, LLC due to irregularities in financial statements related to its subsidiary, Lugano Holdings, Inc., leading to a significant decline in share price [1][3][4]. Group 1: Lawsuit Details - The lawsuit is filed in the U.S. District Court for the Central District of California on behalf of investors who acquired Compass securities from May 1, 2024, to May 7, 2025 [1]. - Investors have until July 8, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Financial Irregularities - On May 7, 2025, Compass disclosed that it identified irregularities in Lugano's financing, accounting, and inventory practices, leading to the conclusion that the financial statements for fiscal 2024 require restatement [3]. - The announcement resulted in a share price drop of $10.70, approximately 62%, from $17.25 to $6.55 [3]. Group 3: Allegations in the Complaint - The complaint alleges that Compass failed to disclose unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings [4]. - It is claimed that these irregularities rendered the overall financial statements of Compass unreliable and necessitated restatement [4]. - The company is also accused of failing to maintain adequate internal controls over its financial statements [4].

Core Points - A shareholder class action lawsuit has been filed against Compass Diversified Holdings, alleging that the company made materially false and misleading statements and failed to disclose adverse information [1] - The lawsuit specifically points to irregularities in the financial practices of Compass's subsidiary, Lugano Holdings, Inc., including unrecorded financing arrangements and issues with sales, cost of sales, inventory, and accounts receivable [1] - The financial statements of Compass as a whole are claimed to be unreliable due to these irregularities, indicating that a restatement of financials may be necessary [1] Legal Context - Shareholders who purchased shares of Compass between May 1, 2024, and May 7, 2025, and suffered significant losses are encouraged to discuss their legal rights [2] - The deadline for shareholders to request to be appointed as lead plaintiff in the case is July 8, 2025 [3] - Holzer & Holzer, LLC is representing shareholders in this litigation and has a history of recovering significant amounts for investors affected by corporate misconduct [3]

Core Viewpoint - Scott+Scott Attorneys at Law LLP is investigating potential misleading statements and failures to disclose material information by Compass Diversified Holdings, which may violate federal securities laws [1]. Company Overview - Compass Diversified Holdings owns and manages a diverse set of middle-market businesses, including Lugano Holdings, Inc., which specializes in luxury jewelry design, manufacturing, and marketing [2]. Recent Developments - On May 7, 2025, Compass issued a press release stating it would not rely on its financial statements for fiscal 2024 due to an ongoing internal investigation into Lugano, leading to a delay in filing its 1Q25 Form 10-Q [3]. - The investigation, conducted by outside counsel and a forensic accounting firm, has preliminarily identified irregularities in Lugano's financing, accounting, and inventory practices [3]. - Following the announcement, Lugano's founder and CEO resigned, and Compass's stock price dropped by $10.70, nearly 62%, closing at $6.55 on May 8, 2025, with unusually high trading volume [3].

Group 1 - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Compass Diversified (NYSE: CODI) experienced a 35% decline on May 8, prompting an investigation into potential overreaction in the market [2] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income and focusing on capital preservation [3] - The investing group Conservative Income Portfolio collaborates with Preferred Stock Trader to offer two income-generating portfolios and a bond ladder [3]

Core Viewpoint - A shareholder has filed a securities class action lawsuit against Compass Group Diversified Holdings, LLC, and Compass Diversified Holdings for alleged misrepresentations regarding financial arrangements and irregularities in their subsidiary's operations [1][2]. Group 1: Lawsuit Details - The lawsuit pertains to investors who purchased or acquired securities of Compass between May 1, 2024, and May 7, 2025 [1]. - Allegations include misrepresentations about unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings, Inc., a subsidiary of Compass [2]. Group 2: Legal Process - Investors wishing to serve as lead plaintiffs must file necessary documents by July 8, 2025 [3]. - Serving as a lead plaintiff is not required to share in any potential recovery from the lawsuit [3]. Group 3: Firm Background - Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has represented both individual investors and large public and private pension funds [4]. - The firm has been recognized for its success in litigating class actions, being named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for sixteen consecutive years [4].

BOSTON, May 12, 2025 (GLOBE NEWSWIRE) -- Berman Tabacco announces that a securities class action alleging violations of the Securities Exchange Act of 1934 has been filed against Compass Diversified Holdings ("Compass" or the "Company") (NYSE: CODI), and others, on behalf of persons or entities who purchased or otherwise acquired publicly traded Compass securities between May 1, 2024, and May 7, 2025, inclusive (the "Class Period"). The case is styled, Matthews v. Compass Group Diversified Holdings, LLC, et ...

Core Viewpoint - The Compass Diversified Holdings is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements related to financial irregularities in its subsidiary, Lugano Holding, Inc. [1][2][3] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Matthews v. Compass Group Diversified Holdings, LLC, and covers purchasers of Compass Diversified Holdings securities from May 1, 2024, to May 7, 2025 [1] - Investors have until July 8, 2025, to seek appointment as lead plaintiff in the lawsuit [1] - The lawsuit alleges that Compass Diversified made false statements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable [2][3] Group 2: Financial Irregularities and Impact - On May 7, 2025, Compass Diversified disclosed that it would not rely on its financial statements for fiscal 2024 due to identified irregularities in its subsidiary's financing and accounting practices [3] - The Audit Committee concluded that the previously issued financial statements for 2024 require restatement, leading to a delay in filing the first quarter 2025 Form 10-Q [3] - Following this announcement, the stock price of Compass Diversified experienced a decline [3] Group 3: Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Compass Diversified securities during the class period to seek lead plaintiff status [4] - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [4] - Participation as lead plaintiff does not affect an investor's ability to share in any potential recovery [4]

Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified due to the company's announcement of a restatement of its 2024 financial statements, linked to undisclosed financing arrangements and irregularities in its Lugano business unit [1][4][6] Group 1: Lawsuit Details - The lawsuit, Matthews v. Compass Diversified Holdings, LLC, seeks to represent investors who purchased Compass securities between May 1, 2024, and May 7, 2025 [1][2] - Allegations include false and misleading statements made by Compass regarding its Lugano unit, which operates in the branded consumer goods sector, and the failure to disclose critical information about financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable [2][3] Group 2: Financial Impact - The alleged irregularities necessitated a restatement of Compass Diversified's 2024 financial statements, rendering them unreliable [3] - Following the disclosure of these issues, Compass's stock price fell by 60% in a single trading day, resulting in significant losses for shareholders [5] Group 3: Regulatory and Investigative Actions - The lawsuit claims that Compass violated the Securities Exchange Act of 1934 by making untrue statements and omitting material facts [6] - Hagens Berman, a law firm, is investigating potential securities violations by Compass and is encouraging affected investors to come forward [7][8]

Core Viewpoint - A lawsuit has been filed against Compass Diversified Holdings and its executives for potential violations of federal securities laws, specifically related to alleged misstatements in financial statements and irregularities in operations [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Central District of California, titled Matthews v. Compass Group Diversified Holdings, Inc., et al., No. 25-cv-981 [2]. - Investors have until July 8, 2025, to request to be appointed to lead the case [2]. Group 2: Allegations Against Compass - The complaint alleges that Compass's fiscal 2024 financial statements contained material misstatements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings, Inc. [3]. - Compass is a statutory trust that manages a portfolio of small and middle-market businesses, including Lugano Holdings, a high-end jewelry designer and manufacturer [3]. Group 3: Stock Market Reaction - Following the announcement of an internal investigation into Lugano, Compass advised investors not to rely on its fiscal 2024 financial statements, leading to a significant stock price decline of approximately 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025 [4].