Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Compass Diversified Holdings (CODI)

Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified Holdings due to alleged false and misleading statements related to financial irregularities in its subsidiary, Lugano Holding, Inc. [1][2] Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals or entities that purchased Compass securities between May 1, 2024, and May 7, 2025, inclusive [1] - The complaint alleges that the defendants made false statements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable [2] Group 2: Company Announcement - On May 7, 2025, Compass issued a press release disclosing non-reliance on its financial statements for fiscal 2024 due to ongoing internal investigations into its subsidiary [3] - The press release indicated that irregularities in Lugano's financing, accounting, and inventory practices were identified, leading to the conclusion that previously issued financial statements for 2024 require restatement [3] - The company also announced a delay in filing its first quarter 2025 Form 10-Q, which contributed to a drop in the stock price [3] Group 3: Investor Information - Investors who acquired shares of Compass are encouraged to contact the law firm Gainey McKenna & Egleston before the lead plaintiff motion deadline of July 8, 2025 [4]