A securities class action has been filed in the USDC – C.D.CA. against Compass Diversified Holdings (CODI) (“Compass” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Compass securities between May 1, 2022, and May 7, 2025, both dates inclusive (the “Class Period.
Compass is a holding company and trust created for the purpose of acquiring and managing a group of small and middle-market businesses headquartered in North America.
The Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that:
(1) the Company’s subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable;
(2) the irregularities and undisclosed details in Lugano Holdings, Inc.’s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement;
(3) Compass failed to maintain adequate internal controls related to its financial statements; and
(4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times, thereby harming investors.
The price of CODI stock fell 8% during after-hours trading on May 7, 2025, and continued to drop precipitously in early trading hours the next day.
If you purchased Compass securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.