NEW YORK, June 11, 2025 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors of the July 8, 2025, deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of investors who acquired Compass Group Diversified Holdings, LLC (“Compass” or the “Company”) (NYSE:CODI) securities during the period from May 1, 2024, through May 7, 2025 (“the Class Period”).
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On May 7, 2025, after the market closed, Compass issued an 8-K and attached press release titled “Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its subsidiary, Lugano Holdings, Inc.” In this release, Compass announced that it “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.” The release also announced that Compass intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of Compass shares declined by $10.70 per share, or approximately 62%, from $17.25 per share on May 7, 2025, to close at $6.55 on May 8, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) the Company’s subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable; (2) the irregularities and undisclosed details in Lugano Holdings, Inc.’s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement; and (3) the Company failed to maintain adequate internal controls related to its financial statements.
If you purchased or otherwise acquired Compass securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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