SAN DIEGO, June 2, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Compass Diversified Holdings (NYSE: CODI) publicly traded securities between May 1, 2024 and May 7, 2025, inclusive (the "Class Period"), have until Tuesday, July 8, 2025 to seek appointment as lead plaintiff of the Compass Diversified class action lawsuit.  Captioned Augenbaum v. Compass Diversified Holdings, No. 25-cv-01003 (C.D. Cal.), the Compass Diversified class action law ...

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 [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Central District of California, captioned 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 group 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 on May 7, 2025, that investors should not rely on its fiscal 2024 financial statements due to an ongoing internal investigation, Compass's stock price dropped approximately 62%, from $17.25 per share to $6.55 per share [4]. - The company indicated that it had identified irregularities in Lugano's financing, accounting, and inventory practices, leading to the resignation of Lugano's founder and CEO without severance compensation [4].

NEW YORK, May 31, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Compass Diversified Holdings and Compass Group Diversified Holdings, LLC (NYSE: CODI) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Compass you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/compass-diversified-holdings. Investors h ...

Core Viewpoint - Compass Diversified Holdings is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to financial misstatements and irregularities in its subsidiary, Lugano Holdings, Inc. [1][3][4] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Augenbaum v. Compass Diversified Holdings, and it involves purchasers of Compass Diversified securities from May 1, 2024, to May 7, 2025 [1]. - The lawsuit alleges that Compass Diversified made false statements and failed to disclose significant accounting violations by Lugano, which affected the reported financial results for fiscal 2024 [3]. - On May 7, 2025, Compass Diversified announced that it would restate its 2024 financial statements due to identified irregularities, leading to a stock price drop of over 62% [4]. Group 2: Financial Impact and Legal Representation - The acquisition of Lugano Holdings was announced on September 7, 2021, with an enterprise value of $256 million [2]. - Robbins Geller Rudman & Dowd LLP is representing the plaintiffs in the class action, highlighting their experience in prosecuting investor class actions related to financial fraud [5][7]. - In 2024, Robbins Geller recovered over $2.5 billion for investors in securities-related class action cases, indicating their capability in handling significant financial recoveries [7].

Core Viewpoint - Shares of Compass Diversified (NYSE: CODI) fell nearly 15% in intraday trading due to troubling accounting practices at a subsidiary, leading to a securities class action lawsuit [1] Financial Measures - Compass Diversified announced urgent liquidity measures including a forbearance agreement with lenders, reduction in management fees, and suspension of quarterly cash distributions [2] - The company will also curtail new investments in Lugano Holdings, the subsidiary involved in the controversy, to focus on its other eight portfolio companies [2] Regulatory Issues - The New York Stock Exchange notified Compass that it is out of compliance with listing requirements due to delayed quarterly report filings, facing a six-month deadline to remedy the situation or risk delisting [3] Legal Actions - A securities class action lawsuit was filed in California, alleging that Compass and executives misled investors about the financial health of Lugano Holdings, claiming undisclosed financing arrangements and irregularities in financial statements [4][5] - The lawsuit contends that Compass's internal controls were inadequate and key information was withheld from shareholders [5] Financial Impact - On May 7, Compass revealed "irregularities" in Lugano's financial practices, leading to a sell-off that erased more than half of the company's market value in one day [6] - Following this, Compass announced a delay in releasing its first-quarter 2025 financial results as an internal investigation is ongoing [6] Investigative Actions - Hagens Berman is investigating potential securities violations by Compass Diversified, indicating the severity of the financial reporting issues [7]

PHILADELPHIA, May 29, 2025 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Compass Diversified Holdings (“Compass” or the “Company”) (NYSE: CODI) on behalf of purchasers of Compass securities between May 1, 2024 through May 7, 2025, inclusive (the “Class Period”). Investor Deadline: Investors who purchased or acquired Compass Diversified Holdings securities during the Class Period may, no later than JULY 8, 2025, seek to be appointed as ...

NEW YORK, May 29, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Compass Diversified Holdings and Compass Group Diversified Holdings, LLC (NYSE: CODI) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Compass you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/compass-diversified-holdings. Investors h ...

Core Viewpoint - Compass Diversified Holdings is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to financial misstatements and irregularities in its subsidiary, Lugano Holdings, Inc. [1][3][4] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Augenbaum v. Compass Diversified Holdings, and it includes claims against Compass Diversified Holdings and its executives for making false statements and failing to disclose significant financial irregularities [1][3]. - Investors who purchased Compass Diversified securities between May 1, 2024, and May 7, 2025, can seek to be appointed as lead plaintiff by July 8, 2025 [1][6]. - The lawsuit alleges that Lugano Holdings violated accounting rules, leading to materially misstated financial results for Compass Diversified in fiscal 2024 [3]. Group 2: Financial Irregularities and Impact - On May 7, 2025, Compass Diversified announced that it would restate its 2024 financial statements due to identified irregularities in Lugano's financing and accounting practices, resulting in a stock price drop of over 62% [4]. - The acquisition of Lugano Holdings was announced on September 7, 2021, with an enterprise value of $256 million, which is now under scrutiny due to the alleged financial mismanagement [2][4]. Group 3: Legal Representation and Firm Background - The plaintiffs are represented by Robbins Geller Rudman & Dowd LLP, a leading law firm in securities fraud litigation, which has secured over $2.5 billion for investors in 2024 alone [5][7]. - Robbins Geller has a strong track record in prosecuting investor class actions and has been ranked 1 in monetary relief for investors in recent years [7].

Core Viewpoint - Compass Diversified (CODI) is taking significant steps to enhance liquidity and reduce costs following the identification of irregularities in the financing, accounting, and inventory practices at its subsidiary, Lugano Holding, Inc. [1][2] Actions Taken - CODI has entered into a forbearance agreement with its lender group to maintain sufficient liquidity for normal operations [5] - The company has significantly reduced management fees to conserve cash [5] - CODI has suspended the quarterly cash distribution historically paid to common shareholders to protect long-term value [5] - Investment in Lugano has been restricted, allowing resources to focus on CODI's other eight subsidiaries [5] Compliance and Reporting - CODI received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with listing standards due to the late filing of its first quarter 2025 Form 10-Q [2][3] - The company has six months from May 19, 2025, to regain compliance by filing the Form 10-Q with the SEC [2] - CODI is unable to assure the timing of the Form 10-Q or any potential restatements of financial information due to the ongoing investigation [3]

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, impacting the financial reporting during the Class Period from May 1, 2024, to May 7, 2025 [1][3]. Company Overview - Compass Diversified Holdings is a private equity firm headquartered in Westport, Connecticut, which acquired a majority interest in Lugano Holdings, Inc., a high-end jewelry designer, in a deal valued at $256 million in 2021 [2]. Legal Allegations - The lawsuit alleges that Compass did not disclose that Lugano violated accounting rules and industry practices during fiscal 2024, leading to distorted financial results due to these irregularities [3]. - It is also claimed that Compass failed to implement effective internal controls over its financial reporting [3]. Investor Information - Investors who purchased Compass securities during the Class Period have until July 8, 2025, to seek appointment as a lead plaintiff representative of the class [2].