Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified Holdings for failing to disclose significant accounting irregularities related to its acquisition of Lugano Holdings, leading to a substantial drop in stock price [1][3][4]. Company Overview - Compass Diversified Holdings is a private equity firm headquartered in Westport, Connecticut, which acquired a majority interest in Lugano Holdings, Inc. in 2021 for an enterprise value of $256 million [2]. Lawsuit Details - The lawsuit claims that during the class period from May 1, 2024, to May 7, 2025, Compass did not disclose that Lugano violated accounting rules and that its 2024 financial results were distorted due to these irregularities [3]. - Compass is accused of failing to implement effective internal controls over its financial reporting [3]. Financial Impact - On May 7, 2025, Compass announced the identification of irregularities in Lugano's accounting practices, leading to the conclusion that the 2024 financial statements required restatement [4]. - Following this announcement, Compass' stock price fell by $10.70 per share, a decline of over 62%, closing at $6.55 on May 8, 2025 [4].

Core Viewpoint - Compass Diversified has issued a warning regarding the reliability of its financial statements for fiscal years 2022, 2023, and 2024 due to expanded accounting irregularities at its subsidiary, Lugano Holding [1][5][6]. Group 1: Financial Irregularities - The company filed a report with the SEC on June 25, 2025, indicating that investors should not rely on previously issued financial statements for the fiscal years ended December 31, 2022, and 2023 [1][5]. - The identified irregularities at Lugano Holding also affected the financial statements for the fiscal year ended December 31, 2024, necessitating a restatement [4][6]. - The irregularities involved violations of applicable accounting rules and industry practices concerning financing, accounting, and inventory procedures [9]. Group 2: Legal Actions - Following the disclosure of accounting irregularities, several class-action lawsuits have been initiated against Compass Diversified, with the lead plaintiff deadline set for July 8, 2025 [3][4]. - The amended complaint in the case Moreno v. Compass Group Diversified Holdings LLC seeks to represent investors who purchased shares during the expanded class period from February 24, 2022, to May 7, 2025 [3][4]. - Hagens Berman, a law firm, is conducting an investigation into potential securities violations by Compass Diversified [8]. Group 3: Market Reaction - The market reacted severely to the news of the accounting irregularities, with Compass Diversified's stock price plummeting by more than 62% following the announcement [7].

Core Viewpoint - The Compass Diversified class action lawsuit alleges violations of the Securities Exchange Act of 1934 by the company and its executives, primarily related to misleading financial statements and irregularities in its subsidiary, Lugano Holdings [1][4][5]. Group 1: Lawsuit Details - The lawsuit is titled Augenbaum v. Compass Diversified Holdings, No. 25-cv-01003 (C.D. Cal.) and seeks to represent purchasers of Compass Diversified Holdings publicly traded securities [1]. - The class action lawsuit claims that Compass Diversified made false statements and failed to disclose significant financial irregularities related to Lugano Holdings, which affected the reported financial results for fiscal 2024 [4][5]. - The lawsuit was initiated after Compass Diversified announced the need to restate its 2024 financial statements due to identified irregularities in Lugano's accounting practices, leading to a stock price drop of over 62% [5]. Group 2: Financial Impact - The acquisition of Lugano Holdings was announced on September 7, 2021, with an enterprise value of $256 million [3]. - Following the announcement of the need for financial restatement, Compass Diversified's stock experienced a significant decline, indicating a loss of investor confidence [5]. Group 3: Legal Representation - The plaintiffs are represented by Robbins Geller Rudman & Dowd LLP, a law firm with extensive experience in prosecuting investor class actions, particularly those involving financial fraud [6][8]. - The firm has a strong track record, having recovered over $2.5 billion for investors in securities-related class action cases in 2024 alone [8].

Core Viewpoint - A lawsuit has been filed against Compass Diversified Holdings and its executives for potential violations of federal securities laws, stemming from material misstatements in financial statements related to its subsidiary, Lugano Holdings, Inc. [1][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: Financial Misstatements - Compass admitted that its fiscal 2022-2024 financial statements contained material misstatements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable for Lugano [3] - On June 25, 2025, Compass announced that investors should not rely on its fiscal 2022 and 2023 financial statements amid the ongoing investigation [5] Group 3: Stock Performance - Following the announcement on May 7, 2025, that investors should not rely on its fiscal 2024 financial statements, Compass's stock price plummeted approximately 62%, from $17.25 per share to $6.55 per share [4]

Core Viewpoint - A lawsuit has been filed against Compass Diversified Holdings and its executives for potential violations of federal securities laws, stemming from material misstatements in financial statements related to its subsidiary, Lugano Holdings, Inc. [1][3][4] 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: Financial Misstatements - Compass admitted that its fiscal 2022-2024 financial statements contained material misstatements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable for Lugano [3] - On May 7, 2025, Compass announced that investors should not rely on its fiscal 2024 financial statements due to an ongoing internal investigation, leading to a stock price decline of approximately 62%, from $17.25 to $6.55 per share [4] - On June 25, 2025, Compass further advised that investors should not rely on its fiscal 2022 and 2023 financial statements amid the ongoing investigation [5] Group 3: Legal Representation - Bleichmar Fonti & Auld LLP, a leading law firm in securities class actions, is representing the plaintiffs in this case [7] - The firm operates on a contingency fee basis, meaning there are no upfront costs for shareholders [6]

Core Viewpoint - A class action securities lawsuit has been filed against Compass Group Diversified Holdings, LLC due to alleged securities fraud affecting investors between February 24, 2022, and May 7, 2025 [1][2] Group 1: Allegations and Impact - The lawsuit claims that Compass Diversified failed to disclose effective internal controls over financial reporting and critical information regarding its subsidiary, Lugano Holding, Inc., which had undisclosed financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable [2] - On May 7, 2025, Compass announced that its financial statements for fiscal 2024 could no longer be relied upon due to an internal investigation into Lugano, leading to a significant drop in stock price from $17.25 per share to $6.55 per share within one day [2] Group 2: Legal Proceedings - Investors who suffered losses during the relevant time frame have until July 8, 2025, to request to be appointed as lead plaintiff in the class action lawsuit [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the United States [4]

Core Viewpoint - A class action lawsuit has been filed against Compass Diversified Holdings, alleging violations of the Securities Exchange Act of 1934 related to misleading financial statements and irregularities in its subsidiary, Lugano Holdings [1][4][5]. Group 1: Lawsuit Details - The lawsuit, titled Augenbaum v. Compass Diversified Holdings, seeks to represent purchasers of Compass Diversified's publicly traded securities [1]. - The allegations include that Lugano Holdings violated accounting rules and that Compass Diversified failed to implement effective internal controls over financial reporting [4]. - The lawsuit claims that Compass Diversified's reported financial results for fiscal 2024 were materially misstated due to these irregularities [4]. Group 2: Financial Impact - On May 7, 2025, Compass Diversified disclosed that it would restate its 2024 financial statements due to identified irregularities, leading to a stock price drop of over 62% [5]. - The acquisition of Lugano Holdings was announced on September 7, 2021, with an enterprise value of $256 million [3]. Group 3: Legal Representation - The plaintiffs are represented by Robbins Geller Rudman & Dowd LLP, a law firm with extensive experience in prosecuting investor class actions [6]. - The firm has a strong track record, having recovered over $2.5 billion for investors in securities-related class action cases in 2024 [8].

Core Viewpoint - Compass Diversified (NYSE: CODI) has warned investors not to rely on its previously issued financial statements for fiscal years ended December 31, 2022, and 2023 due to expanded accounting irregularities [1][5]. Group 1: Financial Irregularities - The company disclosed that accounting irregularities at its subsidiary, Lugano Holding, affected financial statements for fiscal years 2022, 2023, and 2024, necessitating restatements [4][5]. - The initial warning about the irregularities was issued on May 7, 2025, leading to a significant decline in stock price by over 62% following the news [6][7]. Group 2: Legal Actions - A class-action lawsuit, Moreno v. Compass Group Diversified Holdings LLC, has been filed, seeking to represent investors who purchased shares from February 24, 2022, to May 7, 2025 [3][4]. - Hagens Berman, a law firm, is investigating potential securities violations by Compass Diversified, indicating a failure in oversight and internal controls related to financial reporting [8][9]. Group 3: Market Response - The market reacted severely to the news of accounting irregularities, resulting in a stock price drop of more than 62% [7].

NEW YORK, July 3, 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=155230&from=4CLASS PERI ...

Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified Holdings for irregularities in financial reporting related to its acquisition of Lugano Holdings, leading to a significant drop in stock price [1][3]. Group 1: Company Overview - Compass Diversified Holdings is a private equity firm headquartered in Westport, Connecticut [2]. - In 2021, Compass acquired a majority interest in Lugano Holdings, Inc., a high-end jewelry designer, for an enterprise value of $256 million [2]. Group 2: Legal Developments - The class action lawsuit pertains to investors who purchased Compass securities between May 1, 2024, and May 7, 2025 [1]. - Investors have until July 8, 2025, to seek appointment as lead plaintiff in the class action [2]. - On May 7, 2025, Compass disclosed irregularities in Lugano's financing, accounting, and inventory practices, necessitating a restatement of previously issued financial statements for 2024 [3]. Group 3: Market Impact - Following the announcement of the financial irregularities, Compass' stock price fell by $10.70 per share, a decline of over 62%, closing at $6.55 on May 8, 2025 [3].