The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Compass Diversified (“Compass” or the “Company”) CODI securities between February 24, 2022 and May 7, 2025, inclusive (the “Class Period”). Compass investors have until July 8, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR COMPASS DIVERSIFIED (CODI) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at http://www.frankcruzlaw.com.
What Happened?
On May 7, 2025, after the market closed, Compass disclosed that its financial statements for fiscal year 2024 should no longer be relied upon in response to an ongoing internal investigation into the Company’s subsidiary, Lugano Holding, Inc. The Company revealed that the investigation “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices.” Additionally, the Company disclosed that it would delay the filing of its first quarter 2025 10-Q.
On this news, Compass’ stock price fell $10.70, or 62%, to close at $6.55 per share on May 8, 2025, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) certain unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Compass’ subsidiary, Lugano Holdings, Inc.; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Compass securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: http://www.frankcruzlaw.com
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250626020580/en/
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: http://www.frankcruzlaw.com
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