pass Diversified LLC(CODI) GlobeNewswire News Room·2025-05-13 00:00Core Viewpoint - A class action lawsuit has been filed against Compass Group Diversified Holdings, LLC due to irregularities in financial statements related to its subsidiary, Lugano Holdings, Inc., leading to a significant decline in share price [1][3][4]. Group 1: Lawsuit Details - The lawsuit is filed in the U.S. District Court for the Central District of California on behalf of investors who acquired Compass securities from May 1, 2024, to May 7, 2025 [1]. - Investors have until July 8, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Financial Irregularities - On May 7, 2025, Compass disclosed that it identified irregularities in Lugano's financing, accounting, and inventory practices, leading to the conclusion that the financial statements for fiscal 2024 require restatement [3]. - The announcement resulted in a share price drop of 17.25 to $6.55 [3]. Group 3: Allegations in the Complaint - The complaint alleges that Compass failed to disclose unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings [4]. - It is claimed that these irregularities rendered the overall financial statements of Compass unreliable and necessitated restatement [4]. - The company is also accused of failing to maintain adequate internal controls over its financial statements [4].