GlobeNewswire News Roomยท2025-05-15 02:58Core Viewpoint - Compass Diversified Holdings is facing a securities class action lawsuit due to alleged failure to disclose material information during the class period, leading to significant financial restatements and a drastic drop in share price [3][4]. Group 1: Lawsuit Details - Investors have until July 8, 2025, to file lead plaintiff applications in the class action lawsuit against Compass Diversified Holdings for securities purchased between May 1, 2024, and May 7, 2025 [1]. - The lawsuit is pending in the United States District Court for the Central District of California, under the case name Matthews v. Compass Group Diversified Holdings, Inc., et al., No. 25-cv-981 [5]. - The lawsuit alleges that Compass and certain executives failed to disclose material information, violating federal securities laws [3]. Group 2: Financial Impact - On May 7, 2025, Compass Diversified announced that its financial statements for fiscal 2024 would require restatement due to an ongoing internal investigation into its subsidiary, Lugano Holding, Inc. [4]. - Following this announcement, Compass' share price fell approximately 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025 [4]. Group 3: Company Actions - The Audit Committee of Compass' Board of Directors initiated an investigation after concerns were raised regarding Lugano's financing practices, which preliminarily identified irregularities in financing, accounting, and inventory practices [4]. - Moti Ferder, the founder and CEO of Lugano, resigned from all positions without severance compensation effective May 7, 2025 [4]. Group 4: Investor Resources - ClaimsFiler provides resources for Compass Diversified investors to understand their legal options and file claims related to the class action lawsuit [2][6]. - Investors can register for free on ClaimsFiler.com to access information about various securities class action cases and submit inquiries for case evaluations [6].