Workflow
SHAREHOLDER REMINDER: Berger Montague Reminds Compass Diversified Holdings (NYSE: CODI) Investors of the July 8, 2025 Deadline
pass Diversified LLCpass Diversified LLC(US:CODI) GlobeNewswire News Roomยท2025-07-02 21:06

Core Viewpoint - A securities class action lawsuit has been filed against Compass Diversified Holdings for irregularities in financial reporting related to its acquisition of Lugano Holdings, leading to a significant drop in stock price [1][3]. Group 1: Company Overview - Compass Diversified Holdings is a private equity firm headquartered in Westport, Connecticut [2]. - In 2021, Compass acquired a majority interest in Lugano Holdings, Inc., a high-end jewelry designer, for an enterprise value of $256 million [2]. Group 2: Legal Developments - The class action lawsuit pertains to investors who purchased Compass securities between May 1, 2024, and May 7, 2025 [1]. - Investors have until July 8, 2025, to seek appointment as lead plaintiff in the class action [2]. - On May 7, 2025, Compass disclosed irregularities in Lugano's financing, accounting, and inventory practices, necessitating a restatement of previously issued financial statements for 2024 [3]. Group 3: Market Impact - Following the announcement of the financial irregularities, Compass' stock price fell by $10.70 per share, a decline of over 62%, closing at $6.55 on May 8, 2025 [3].