CODI CLASS ACTION: A Class Action was filed against Compass Diversified Holdings for Securities Fraud -- Contact BFA Law by July 8 Legal Deadline (NYSE:CODI)

Core Viewpoint - A lawsuit has been filed against Compass Diversified Holdings and its executives for potential violations of federal securities laws, stemming from material misstatements in financial statements related to its subsidiary, Lugano Holdings, Inc. [1][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: Financial Misstatements - Compass admitted that its fiscal 2022-2024 financial statements contained material misstatements regarding unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable for Lugano [3] - On May 7, 2025, Compass announced that investors should not rely on its fiscal 2024 financial statements due to an ongoing internal investigation, leading to a significant stock price decline of approximately 62% from $17.25 to $6.55 per share [4] - On June 25, 2025, Compass further advised that investors should not rely on its fiscal 2022 and 2023 financial statements amid the ongoing investigation [5] Group 3: Company Background - Compass is a statutory trust that acquires and manages a group of small and middle-market businesses, including high-end jewelry designer and manufacturer Lugano Holdings, Inc. [3]