NEW YORK, May 30, 2025 (GLOBE NEWSWIRE) — Wolf Popper LLP announced that three class action lawsuits have been filed on behalf of investors who purchased Compass Diversified Holdings (“Compass”) common or preferred stock (NYSE: CODI, CODI PR A, CODI PR B, CODI PR C) between May 1, 2024 and May 7, 2025. The lead plaintiff deadline is July 8, 2025.
On May 7, 2025, Compass issued a press release “disclos[ing] non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc.” and “announc[ing] that it intends to delay the filing of its first quarter 2025 Form 10-Q.” The press release disclosed that “[t]he Audit Committee of CODI’s Board of Directors promptly launched an investigation after CODI’s senior leadership was made aware of concerns about how Lugano was potentially financing inventory” and that “[t]he investigation…is ongoing but has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices.” Accordingly, “[a]fter 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.” An “irregularity” is defined in the accounting literature as an intentional misstatement of financial results. Furthermore, Compass disclosed Lugano’s founder and CEO had resigned from all of his positions at Lugano. On this news, Compass’ stock price collapsed $10.70 per share to $6.55 on May 8, 2025, down 62.0% on extremely heavy volume.
Before the market opened on May 28, 2025, Compass announced it was taking steps to enhance its liquidity and reduce costs, including suspending Compass’ quarterly dividend, in reaction to the Lugano investigation. Compass’ intraday stock price is down 13.5% to $6.51 per share.
Investors who lost over $50,000 trading in Compass common or preferred stock and who would like to discuss the investigation should contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by courts that have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm’s website at www.wolfpopper.com.
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Wolf Popper LLP
Adam Savett
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New York, NY 10022
Tel.: (212) 451-9655
Email: asavett@wolfpopper.com
