CODI INVESTOR NOTICE: Robbins Geller Rudman & Dowd LLP Announces that Compass Diversified Holdings Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

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]