Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm Encourages Compass Diversified (CODI) Investors To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Compass Diversified (“Compass” or the “Company”) (NYSE: CODI) securities between May 1, 2024 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), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS

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.

If you purchased or otherwise acquired Compass securities during the Class Period, you may move the Court no later than July 8, 2025 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [e-mail]
Telephone: [phone],
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.