NEW YORK CITY, NY / ACCESS Newswire / May 8, 2025 / Wolf Popper LLP is investigating potential claims on behalf of purchasers of Compass Diversified Holdings ("Compass") common stock (NYSE:CODI).
Compass owns several consumer branded and industrial companies including 5.11, BOA Holdings PrimaLoft, Lugano, Sterno and others. In 2024, Compass had $2.20 billion in revenue and $12.8 million in net income.
In September 2021, Compass announced it acquired Lugano Diamonds & Jewelry, Inc. for an enterprise value of $256 million. In 2024, Lugano generated approximately $471 million in revenue and $195 million in adjusted EBITDA.
On May 7, 2025, after the markets closed, Compass filed a Form 8-K, which stated that the Audit Committee of Board of Directors "commenced an internal investigation into the financing, accounting, and inventory practices of Lugano Holding, Inc. (‘Lugano'), a subsidiary and operating segment of the Company, based on concerns reported to Company management as to these practices. Upon being notified of the concerns, Company management immediately informed the Audit Committee, and the Audit Committee promptly retained outside legal counsel to assist in conducting the investigation." Further, Compass disclosed that "[t]he investigation, which remains ongoing, focuses on certain unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Lugano." Further, "the Audit Committee concluded that the Company's consolidated financial statements and other financial information for the fiscal year ended December 31, 2024 should no longer be relied upon due to the materiality of the preliminary findings of the investigation described above."
Compass also disclosed that, "[i]n connection with the ongoing investigation, on May 7, 2025, Mordechai Haim ‘Moti' Ferder, resigned from his position as Chief Executive Officer of Lugano, and from all offices and directorships previously held with Lugano and its subsidiaries and affiliates."
Compass shares are down $10.88 per share, or 63%, on signifigant volume in early trading today.
Investors who lost over $50,000 trading in CODI common stock and who would like to discuss the investigation should contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper's reputation and expertise have been repeatedly recognized by courts that have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm's website at www.wolfpopper.com.
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Wolf Popper LLP
Adam Savett
845 Third Avenue
New York, NY 10022
Tel.: (212) 451-9655
Email: asavett@wolfpopper.com
SOURCE: Wolf Popper LLP
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