CODI Investors Have the Opportunity to Lead the Compass Diversified Securities Fraud Lawsuit with Faruqi & Faruqi, LLP

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 in a class action lawsuit by July 8, 2025 [2][4]. Group 1: Allegations Against Compass Diversified - The complaint alleges that Compass and its executives made false or misleading statements and failed to disclose significant issues related to its subsidiary, Lugano Holdings, Inc., including unrecorded financing arrangements and irregularities in financial reporting [4]. - It is claimed that the financial statements of Compass as a whole were rendered unreliable due to these irregularities, necessitating a restatement of financial results [4]. - The company failed to maintain adequate internal controls over its financial statements, leading to materially false public statements [4]. Group 2: Recent Developments - 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, which identified irregularities in financing, accounting, and inventory practices [5]. - Following this announcement, Compass Diversified's stock price fell by 8% in after-hours trading, indicating a negative impact on investors [6]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses 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 role of lead plaintiff in the class action lawsuit is open to any member of the putative class, with the ability to share in any recovery not affected by the decision to serve as lead plaintiff [7].