BOSTON, May 09, 2025 (GLOBE NEWSWIRE) -- Berman Tabacco announces that it is investigating potential securities law violations by Compass Diversified Holdings (“Compass” or the “Company”) (NYSE: CODI). About the Investigation On May 7, 2025, after the markets closed, Compass filed a Form 8-K which stated that the Audit Committee of Board of Directors “commenced an internal investigation into the financing, accounting, and inventory practices of Lugano Holding, Inc. (‘Lugano’), a subsidiary and operating se ...

Core Viewpoint - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Compass Diversified Holdings, focusing on false or misleading statements made by the company and its executives [1] Company Overview - Compass Diversified is an owner of middle market branded consumer and industrial businesses, including Lugano Holding, Inc., which specializes in high-end jewelry design, manufacturing, and marketing [2] Recent Developments - On May 7, 2025, Compass Diversified disclosed a non-reliance on its financial statements for fiscal 2024 due to an ongoing internal investigation into its subsidiary, Lugano Holding, Inc. [3] - The Audit Committee of Compass Diversified's Board of Directors initiated an investigation after concerns were raised regarding Lugano's inventory financing practices, identifying irregularities in non-CODI financing, accounting, and inventory practices [3] - The Audit Committee concluded that the financial statements for 2024 require restatement and should no longer be relied upon, leading to the resignation of Lugano's founder and CEO, Moti Ferder, without severance compensation [3] - Following these revelations, Compass Diversified's stock price fell approximately 62% [3]

Core Insights - Compass Diversified's stock dropped 59% following the announcement that its 2024 financial statements are no longer reliable due to irregularities at its Lugano Holding subsidiary [1][2][4] - An internal investigation into Lugano's financing and accounting practices has revealed significant irregularities, leading to a delay in the filing of the first quarter 2025 financial report and a restatement of 2024 results [2][4] - The founder and CEO of Lugano, Moti Ferder, resigned without severance amid the fallout from the investigation [3] Investigation Details - Hagens Berman is investigating potential violations of U.S. securities laws related to Compass Diversified, focusing on whether shareholders were misled [5][6] - The investigation is scrutinizing the company's disclosures and practices, particularly in light of the accounting irregularities at Lugano [6] Company Response - Compass Diversified's CEO, Elias Sabo, emphasized that the issues uncovered do not reflect the company's values and indicated a commitment to addressing the situation [4] - The company is taking steps to distance itself from the conduct of its subsidiary, Lugano [4]

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Compass Diversified (“Compass” or the “Company”) (NYSE:CODI) on behalf of Compass stockholders. Our investigation concerns whether Compass has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. The investigation focuses on whether the Company issued false and/or mi ...

SAN DIEGO, May 8, 2025 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Compass Diversified Holdings (NYSE: CODI) focused on whether Compass Diversified and certain of its top executives made false and/or misleading statements and/or failed to disclose material information to investors.If you have information that could assist in the Compass Diversified investigation or if you are a Compass Diversified investor who suffered a lo ...

NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Compass Diversified Holdings (“Compass” or the “Company”) (NYSE:CODI). The investigation concerns whether Compass and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] On May 7, 2025, after the markets closed, Compass filed a Form 8-K which stated that the Audit Committee of Board ...

Core Viewpoint - DJS Law Group is investigating claims on behalf of investors of Compass Diversified for potential violations of securities laws [1] Investigation Details - The investigation has identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices [2] - Moti Ferder, the founder and CEO of Lugano, resigned from all positions effective May 7, 2025, without receiving severance compensation [2] DJS Law Group's Focus - DJS Law Group aims to enhance investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions, corporate governance litigation, and M&A appraisals [3] - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3]

LOS ANGELES, May 8, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Compass Diversified ("Compass" or "the Company") (NYSE: CODI) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Compass disclosed on May 7, 2025, that its financial statements for fiscal year 20 ...

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 plummeted by $10.70, or nearly 62%, closing at $6.55 on May 8, 2025, with unusually high trading volume [3].

Core Viewpoint - Compass Diversified's stock plummeted 59% following the announcement that its 2024 financial statements are unreliable due to irregularities at its Lugano Holding subsidiary [1][2]. Group 1: Financial Irregularities - An internal investigation into Lugano's financing and accounting practices has revealed significant irregularities, leading to a delay in filing the first quarter 2025 financial report and a restatement of 2024 results [2][4]. - The investigation is being conducted by outside counsel and a forensic accounting firm, which has already identified issues with Lugano's inventory and non-Compass financing arrangements [2][4]. Group 2: Leadership Changes - Moti Ferder, the founder and CEO of Lugano, resigned from all positions on May 7 and will not receive severance [3]. Group 3: Company Response - Elias Sabo, CEO of Compass Diversified, stated that the findings from the investigation do not reflect the company's values and emphasized the seriousness of the issues at Lugano [4]. Group 4: Legal Investigations - Hagens Berman is investigating potential violations of U.S. securities laws related to Compass Diversified, focusing on whether shareholders were misled and if the company's disclosures met federal obligations [5][6].