Securities Fraud Investigation Into Compass Diversified (CODI) Continues - Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm

Core Viewpoint - Compass Diversified is under investigation for potential violations of federal securities laws following the disclosure of irregularities in its subsidiary Lugano Holding's financial practices, leading to a significant drop in its stock price [1][2]. Financial Disclosure - On May 7, 2025, Compass announced that its financial statements for fiscal year 2024 should no longer be relied upon due to an ongoing internal investigation into Lugano Holding [2]. - The investigation has preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices [2]. Management Changes - Following the investigation, Moti Ferder, the founder and CEO of Lugano, resigned from all positions effective May 7, 2025, and will not receive any severance compensation [2]. Stock Market Reaction - The announcement resulted in a sharp decline in Compass' stock price, which fell by $10.70, or 62$6.55 per share on May 8, 2025 [2].