GlobeNewswire News Room·2025-05-13 01:38Core Viewpoint - A class action has been filed against Compass Group Diversified Holdings, LLC (NYSE: CODI) due to allegations of insufficient disclosure controls and irregularities in financial reporting related to its subsidiary, Lugano Holdings, Inc. [1][2] Allegations - The complaint states that during the class period from May 1, 2024, to May 7, 2025, Compass failed to disclose unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings, Inc. [2] - On May 7, 2025, Compass issued an 8-K and a press release indicating non-reliance on its financial statements for fiscal 2024 due to identified irregularities in Lugano's financing, accounting, and inventory practices, leading to a required restatement of the financial statements [3] Impact on Stock - Following the announcement of the irregularities and the need for restatement, the stock price of Compass fell significantly, adversely affecting investors [3] Class Action Participation - Shareholders may be eligible to participate in the class action against Compass, with a deadline of July 8, 2025, for those wishing to serve as lead plaintiff [4] Legal Representation - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless a recovery is achieved [5]