CODI SHAREHOLDER ALERT: Hagens Berman Alerts Compass Diversified (CODI) Investors to Securities Class Action Over Accounting Irregularities, Encourages Investors with Losses to Contact the Firm Before July 8th Deadline
The firm is navigating a turbulent period marked a precipitous stock decline, burgeoning class-action lawsuits, and recent accounting malfeasance revelations at one of its portfolio companies now spanning its 2022 through 2024 fiscal years.
Recently, the plaintiff in the action styled Moreno v. Compass Group Diversified Holdings LLC, Case No. 3:25-cv-00758 (D. Conn.) filed an amended complaint that now seeks to represent purchasers or acquirers of Compass Diversified Holdings' publicly traded securities during an expanded Class Period -- February 24, 2022 through May 7, 2025.
Hagens Berman is investigating the claims and urges investors who purchased Compass shares and suffered substantial losses to submit your losses now.
Expanded Class Period: Feb. 24, 2022 – May 7, 2025
Lead Plaintiff Deadline: July 8, 2025
Visit: www.hbsslaw.com/investor-fraud/codi
Contact the Firm Now: [email protected], 844-916-0895
Compass Diversified's June 25, 2025 Admission To Accounting Irregularities:
After hours on June 25, 2025, Compass Diversified filed a Form 8-K with the SEC expanding on the company's initial (May 7, 2025) warning that, due to irregularities at its Lugano Holding subsidiary, investors should no longer rely on its full-year and interim financial statements for the year ended December 31, 2024.
The June 25 filing discloses that, in addition to the 2024 false financial statements, 'the identified irregularities also existed during fiscal years 2022 and 2023' and investors should no longer rely on those annual and quarterly financial statements.
Compass Diversified (CODI) Securities Class Actions:
The company's May 7, 2025 disclosure of 2024 accounting irregularities ignited several securities class action lawsuits alleging that Compass Diversified made false and misleading statements while failing to disclose critical information to investors, including:
On May 7, 2025, investors began to learn the truth, when Compass Diversified revealed that it 'preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices.' Following discussions with senior leadership and investigators, the Audit Committee of CODI's Board concluded that 'previously issued financial statements for 2024 require restatement and should no longer be relied upon.' The company also announced its intention to delay the filing of its first-quarter 2025 Form 10-Q.
The market's immediate response was severe, with the price of Compass Diversified's stock plummeting by more than 62% on the news.
Hagens Berman's Investigation
Hagens Berman, a national investor rights law firm, has announced it is conducting its own investigation into potential securities violations by Compass Diversified.
'The cascade of events, from the restatement of financials to the drastic measures to conserve cash, suggests a deeply entrenched issue at Lugano that Compass Diversified seemingly failed to adequately oversee,' said Reed Kathrein, the partner at Hagens Berman leading the firm's probe.
If you invested in Compass Diversified and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Compass Diversified case and our investigation, read more»
Whistleblowers: Persons with non-public information regarding Compass Diversified should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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