FINAL DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Compass Diversified
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements Share
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable; (2) the irregularities and undisclosed details in Lugano Holdings, Inc.'s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement; (3) the Company failed to maintain adequate internal controls related to its financial statements; and (4) as a result, defendants' public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On May 7, 2025, after the market closed, the Company 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, Compass Diversified stock price fell 8% during after-hours trading on May 7, 2025, thereby injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Compass' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Compass Diversified investigation, go to www.faruqilaw.com/CODI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Is Stanley Black & Decker (SWK) One of the Best Income Stocks for Conservative Investors?
Stanley Black & Decker, Inc. (NYSE:SWK) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. A toolbox filled with an array of different tools, representing the professional products of the company. Stanley Black & Decker, Inc. (NYSE:SWK) is an American manufacturer known for its industrial tools, home hardware, and security products. The company is in the midst of a steady yet impactful transformation. It has already completed $1.7 billion of a planned $2 billion cost-reduction effort, resulting in a rebound in gross margins to 31.2%, which is a 1,200-basis-point improvement from the low point. At the same time, operating leverage is strengthening, and inventory levels are declining. While Stanley Black & Decker, Inc. (NYSE:SWK)'s Tools & Outdoor division accounts for 87% of its revenue, the smaller Engineered Fastening segment plays a key role in areas like aerospace, automotive, and industrial production. Despite its strong market position and ties to reshoring, infrastructure, and automation trends, the stock is still down more than 69% from its 2021 peak and trades at under seven times its peak free cash flow. Stanley Black & Decker, Inc. (NYSE:SWK) has paid uninterrupted dividends to shareholders for the past 148 years. On July 24, it declared a 1.2% hike in its quarterly dividend to $0.83 per share. This marked the company's 59th consecutive year in which it has raised its dividends. The stock supports a dividend yield of 4.91%, as of July 31. While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
20 minutes ago
- Yahoo
The Strength of American Water Works Company (AWK) as a Consistent Income Stock
American Water Works Company, Inc. (NYSE:AWK) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. A technician in a deep-water treatment facility, ensuring clean water for public safety. American Water Works Company, Inc. (NYSE:AWK) is a regulated utility that provides water and wastewater services to over 14 million people in 14 states. Its regulated utility operations are the core of its business, accounting for 92 percent of operating revenue in 2024. The company focuses on delivering clean and reliable water services across its service areas. American Water Works Company, Inc. (NYSE:AWK) maintains a strong financial profile, supported by an investment-grade credit rating, which allows it to borrow at lower interest rates and under favorable terms. The company follows a conservative dividend policy, targeting a payout ratio of 50% to 60% of its adjusted earnings. With projected earnings growth between 7% and 9% annually, American Water Works expects its dividend to grow at a similar pace. The company has increased its dividend every year since going public in 2008. American Water Works Company, Inc. (NYSE:AWK) currently pays a quarterly dividend of $0.8275 per share and has a dividend yield of 2.36%, as recorded on July 31. While we acknowledge the potential of AWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Yahoo
20 minutes ago
- Yahoo
Is American Express Company (AXP) a Reliable Income Stock for Long-Term Investors?
American Express Company (NYSE:AXP) is included among the 11 Best Income Stocks to Buy According to Hedge Funds. A close-up view of a payment terminal, capturing the sophistication of a payment network. American Express Company (NYSE:AXP) sets itself apart from other credit card companies by focusing on a wealthier customer base, offering premium gold and platinum cards, and serving a large number of corporate clients. Customers often benefit from generous travel rewards, making the brand particularly appealing to frequent travelers. Unlike Visa or Mastercard, American Express Company (NYSE:AXP) not only issues cards but also runs its own payment network, allowing it to lend directly and earn interest income. Its dividend track record adds to its appeal, with a modest 1.1% yield supported by a low 21% payout ratio. The company has grown its dividend at an annual rate of 12% over the past five years and maintains a strong balance sheet, leaving plenty of room for future increases and long-term compounding. American Express Company (NYSE:AXP) currently offers a quarterly dividend of $0.82 per share and has a dividend yield of 1.1%, as of July 31. It is among the best dividend stocks to invest in. While we acknowledge the potential of AXP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
