Compass Diversified Holdings: July 8, 2025 Filing Deadline In Securities Class Action Lawsuit

NEW YORK, May 21, 2025: Wolf Popper LLP announced that three class action lawsuits have been filed on behalf of investors who purchased Compass Diversified Holdings (“Compass”) common and preferred stock (NYSE: CODI, CODI PR A, CODI PR B, CODI PR C) between May 1, 2024 and May 7, 2025. The lead plaintiff deadline is July 8, 2025.

On May 7, 2025, Compass issued a press release “disclos[ing] non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc.” and “announc[ing] that it intends to delay the filing of its first quarter 2025 Form 10-Q.” The press release disclosed that “[t]he Audit Committee of CODI’s Board of Directors promptly launched an investigation after CODI’s senior leadership was made aware of concerns about how Lugano was potentially financing inventory” and that “[t]he investigation…is ongoing but has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices.” An “irregularity” is defined in the accounting literature as an intentional misstatement of financial results. Accordingly, “[a]fter 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. Furthermore, Compass disclosed Lugano’s founder and CEO had resigned from all of his positions at Lugano. On this news, Compass’ stock price collapsed $10.70 per share to $6.55 on May 8, 2025, down 62.0% on extremely heavy volume.

Investors who lost over $50,000 trading in Compass common or preferred stock and who would like to discuss the investigation should contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com.