NEW YORK, May 19, 2025 (GLOBE NEWSWIRE) — Abraham, Fruchter & Twersky, LLP (www.aftlaw.com), a nationally recognized law firm focusing on protecting investors’ rights, informs shareholders it has filed a class action lawsuit on behalf of investors who purchased Compass Diversified Holdings (“Compass” or “Company”) common stock (NYSE: CODI, , CODI-PA, CODI-PB, CODI-PC) between May 1, 2024 and May 7, 2025, inclusive (the “Class Period”). The case is captioned Matthews v. Compass Group Diversified Holdings, LLC, No. 25-cv-00981 (C.D. Cal.).
Investors who held Company securities during the Class Period have until July 8, 2025 to seek appointment as lead plaintiff.
CASE ALLEGATIONS: The class action lawsuit alleges that throughout the Class Period the Company and its executives made false and misleading statements because of certain undisclosed and unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Compass’s subsidiary, Lugano Holding, Inc.
The class action lawsuit further alleges that on May 7, 2025, Compass issued a press release titled “Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc.” revealing that Compass “ha[d] preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.” Compass’s press release also disclosed that Compass intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of Compass’s stock fell.
LEAD PLAINTIFF DEADLINE: Lead plaintiff motions for the Compass class action lawsuit must be filed with the court no later than July 8, 2025. If you suffered substantial losses by investing in Compass securities and would like to discuss serving as lead plaintiff of the Compass class action lawsuit, with no cost or obligation to you, please contact Michael Klein or Dylan Berger by email at mklein@aftlaw.com or dberger@aftlaw.com or by telephone at (212) 279-5050.
Abraham, Freiber & Twerksky, LLP (www.aftlaw.com) is a law firm based in New York with an office in California that has extensive experience in litigating securities law violations on behalf of investors.
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