CODI INVESTOR NOTICE: Compass Diversified Holdings Investors with Substantial Losses Have Opportunity to Lead Securities Class Action Lawsuit

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 [1][3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Augenbaum v. Compass Diversified Holdings, and it allows purchasers of Compass Diversified securities from May 1, 2024, to May 7, 2025, to seek lead plaintiff status by July 8, 2025 [1][6]. - The lawsuit alleges that Compass Diversified made false statements and failed to disclose significant accounting violations at Lugano, which affected the reported financial results for fiscal 2024 [3][4]. Group 2: Financial Impact and Company Response - On May 7, 2025, Compass Diversified announced that it would restate its fiscal 2024 financial statements due to identified irregularities in Lugano's accounting practices, leading to a stock price drop of over 62% [4]. - The acquisition of Lugano Holdings was initially valued at $256 million, but the subsequent financial irregularities have raised concerns about the accuracy of this valuation and the overall financial health of Compass Diversified [2][3]. Group 3: Legal Representation and Firm Background - Robbins Geller Rudman & Dowd LLP is representing the plaintiffs in the class action lawsuit, highlighting their extensive experience in prosecuting investor class actions related to financial fraud [5][7]. - The firm has a strong track record, having recovered over $2.5 billion for investors in 2024 alone, making it one of the leading law firms in securities fraud litigation [7].