Scott+Scott Attorneys at Law LLP Reminds Investors of Its Ongoing Investigation Into Compass Diversified Holdings (NYSE: CODI)

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].