Faruqi & Faruqi Reminds Compass Diversified Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of July 8, 2025 - CODI

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Compass Diversified due to alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status by July 8, 2025 [4][6]. Group 1: Allegations Against Compass Diversified - The complaint alleges that Compass and its executives made false and misleading statements and failed to disclose irregularities in its subsidiary, Lugano Holdings, Inc., including unrecorded financing arrangements and issues with sales, cost of sales, inventory, and accounts receivable [6]. - It is claimed that the irregularities in Lugano's financial statements rendered Compass's overall financial statements unreliable and necessitated a restatement [6]. - The company is accused of failing to maintain adequate internal controls related to its financial statements, leading to materially false and misleading public statements [6]. Group 2: Impact on Stock and Investor Losses - On May 7, 2025, Compass disclosed that its financial statements for fiscal year 2024 should no longer be relied upon due to an ongoing internal investigation into Lugano Holdings, resulting in the resignation of Lugano's founder and CEO without severance [7]. - Following this disclosure, Compass Diversified's stock price fell by 8% during after-hours trading, causing significant losses for investors [8]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $100,000 in Compass stock or options between May 1, 2024, and May 7, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [1]. - The court-appointed lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who can direct and oversee the litigation on behalf of the class [9]. - Faruqi & Faruqi is also seeking information from whistleblowers, former employees, and shareholders regarding Compass's conduct [10].