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Compass Diversified Holdings (NYSE: CODI)

Case Details

Join The Class Action

This lawsuit is for anyone who acquired securities in Compass Diversified Holdings (NYSE: CODI) from May 1, 2024 through May 7, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors it had in place sufficient internal controls but then by failing to timely discover malfeasance at the Company’s subsidiary, Lugano Holding, Inc.

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” and that “[e]ffective May 7, 2025, Lugano’s founder and CEO, Moti Ferder, resigned from all of his positions at Lugano and will not receive any severance compensation.”  On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Compass Diversified Holdings (NYSE: CODI) from rom May 1, 2024 through May 7, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.