CODI INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Files Class Action Lawsuit Against Compass Diversified Holdings and Announces Opportunity for Investors with Substantial Losses to Lead Class Action Lawsuit
SAN DIEGO--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Compass Diversified Holdings (NYSE: CODI) publicly traded securities between May 1, 2024 and May 7, 2025, inclusive (the 'Class Period'), have until July 8, 2025 to seek appointment as lead plaintiff of the Compass Diversified class action lawsuit. Captioned Augenbaum v. Compass Diversified Holdings, No. 25-cv-01003 (C.D. Cal.), the Compass Diversified class action lawsuit charges Compass Diversified Holdings, Compass Group Diversified Holdings LLC, Compass Group Management LLC, and certain of Compass Diversified's top current and former executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Compass Diversified class action lawsuit, please provide your information here:
CASE ALLEGATIONS: On September 7, 2021, Compass Diversified announced the acquisition of a majority interest in Lugano Holdings, Inc., a designer, manufacturer, and marketer of high-end jewelry, in a deal with an enterprise value of $256 million (excluding working capital and certain other adjustments upon closing).
The Compass Diversified class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Lugano had violated applicable accounting rules and acceptable industry practices with respect to its financing, accounting, and inventory practices during Compass Diversified fiscal 2024; (ii) Lugano's 2024 financial results had been artificially distorted by these irregularities; (iii) Compass Diversified had failed to implement effective internal controls over Compass Diversified's financial reporting; and (iv) as a result, Compass Diversified's reported 2024 financial results did not reflect the actual financial results of Compass Diversified and such reported results were materially misstated.
On May 7, 2025 Compass Diversified 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 Diversified 'has 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 Diversified's release also announced that Compass Diversified intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of Compass Diversified's stock fell more than 62%.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Compass Diversified publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Compass Diversified class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Compass Diversified class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Compass Diversified class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Compass Diversified class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
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