GlobeNewswire News Room·2025-06-23 20:00Core Viewpoint - The article discusses a class action lawsuit against Compass Group Diversified Holdings, LLC (NYSE: CODI) due to alleged failures in financial reporting and internal controls, leading to significant stock price decline following the revelation of these issues [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from May 1, 2024, to May 7, 2025 [3]. - Allegations include failure to disclose effective internal controls over financial reporting and undisclosed financing arrangements related to Lugano Holding, Inc., which exhibited irregularities in sales, cost of sales, inventory, and accounts receivable [3]. Impact of the Revelation - On May 7, 2025, Compass announced that its financial statements for fiscal 2024 could no longer be relied upon due to an internal investigation into Lugano, leading to a dramatic stock price drop from $17.25 per share to $6.55 per share on May 8, 2025 [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by July 8, 2025, to potentially become lead plaintiffs and will be enrolled in a portfolio monitoring software for updates [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and seeks recovery for losses incurred due to misleading statements or omissions by companies, emphasizing responsible business practices [5].