NEW YORK CITY, NY / ACCESS Newswire / May 10, 2025 / Pomerantz LLP is investigating claims on behalf of investors of Compass Diversified ("CODI" or the "Company") (NYSE:CODI). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether CODI and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On May 7, 2025, CODI issued a press release "disclosing non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc." and "announcing 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." Accordingly, "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."
On this news, CODI's stock price fell $10.70 per share, or 62.03%, to close at $6.55 per share on May 8, 2025.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
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SOURCE: Pomerantz LLP
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