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CODI INVESTOR NOTICE: Compass Diversified Holdings Investors with Losses are Notified of the Ongoing Securities Fraud Class Action and July 8 Deadline – BFA Law (NYSE:CODI)
CODIpass Diversified LLC(CODI) GlobeNewswire News Room·2025-06-06 12:46

Core Viewpoint - A lawsuit has been filed against Compass Diversified Holdings and its executives for potential violations of federal securities laws, specifically related to alleged misstatements in financial statements and irregularities in operations [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Central District of California, titled Matthews v. Compass Group Diversified Holdings, Inc., et al., No. 25-cv-981 [2]. - Investors have until July 8, 2025, to request to be appointed to lead the case [2]. Group 2: Allegations Against Compass - The complaint alleges that Compass's fiscal 2024 financial statements contained material misstatements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable related to Lugano Holdings, Inc. [3]. - Compass is a statutory trust that manages a portfolio of small and middle-market businesses, including Lugano Holdings, a high-end jewelry designer and manufacturer [3]. Group 3: Stock Market Reaction - Following the announcement of an internal investigation into Lugano's practices, Compass's stock price dropped approximately 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025 [4]. - The company advised investors not to rely on its fiscal 2024 financial statements and announced a delay in filing its Q1 2025 financial results [4]. Group 4: Legal Representation - Bleichmar Fonti & Auld LLP, a leading securities law firm, is representing plaintiffs in this case and has a history of recovering significant amounts for investors in previous cases [6]. - The firm operates on a contingency fee basis, meaning shareholders are not responsible for court costs or litigation expenses [5].