Compass Diversified (CODI) Situation Worsens, Admits Accounting Irregularities During 2022 - 2024, Expanded Class Period In Amended Securities Class Action Complaint - Hagens Berman

Core Viewpoint - Compass Diversified (NYSE: CODI) has warned investors not to rely on its previously issued financial statements for fiscal years ended December 31, 2022, and 2023 due to expanded accounting irregularities [1][5] Financial Irregularities - The company disclosed that accounting irregularities at its subsidiary, Lugano Holding, affected financial statements for fiscal years 2022, 2023, and 2024, necessitating restatements [4][5] - The irregularities include violations of applicable accounting rules and industry practices concerning financing, accounting, and inventory procedures [9] Legal Actions - An amended complaint in the case Moreno v. Compass Group Diversified Holdings LLC seeks to represent investors who purchased Compass securities from February 24, 2022, to May 7, 2025 [3][4] - Multiple securities class action lawsuits have been initiated following the May 7, 2025, disclosure of accounting irregularities [6][8] Market Reaction - Following the announcement of accounting irregularities, Compass Diversified's stock price fell by more than 62% [7] Investigations - Hagens Berman, a national investor rights law firm, is conducting an investigation into potential securities violations by Compass Diversified [8][10]