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CODI INVESTOR NOTICE: Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against Compass Diversified Holdings and Announces Opportunity for Investors with Substantial Losses to Lead Class Action Lawsuit
pass Diversified LLCpass Diversified LLC(US:CODI) GlobeNewswire News Roomยท2025-05-16 10:00

Core Viewpoint - Compass Diversified Holdings is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to financial misstatements and irregularities in its subsidiary, Lugano Holdings, Inc. [1][3][4] Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Augenbaum v. Compass Diversified Holdings and covers purchasers of Compass Diversified 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 and failed to disclose significant financial irregularities at Lugano Holdings [3] Group 2: Allegations Against Compass Diversified - Allegations include violations of accounting rules by Lugano, which distorted its 2024 financial results [3] - Compass Diversified is accused of lacking effective internal controls over financial reporting, leading to materially misstated financial results for fiscal 2024 [3] - On May 7, 2025, Compass Diversified announced the need to restate its 2024 financial statements due to identified irregularities, causing a stock price drop of over 62% [4] Group 3: Legal Representation and Process - The plaintiffs are represented by Robbins Geller Rudman & Dowd LLP, a law firm with extensive experience in prosecuting investor class actions [5] - 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 [6] - The lead plaintiff will represent the interests of all class members and can select a law firm of their choice for litigation [6]