Latest news with #classactionlawsuit
Associated Press
a day ago
- Business
- Associated Press
Compass Diversified (CODI) Faces Securities Class Action After Admitting to Accounting 'Irregularities'
SAN FRANCISCO, June 29, 2025 (GLOBE NEWSWIRE) -- After hours on June 25, 2025, Connecticut-based private equity firm Compass Diversified (NYSE: CODI) filed a report with the SEC warning investors not to rely on previously issued financial statements for its fiscal years ended- and interim periods within- December 31, 2022 and 2023, citing an expanded scope of previously disclosed accounting irregularities. 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: 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 Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
New York Times
2 days ago
- New York Times
Jim Harbaugh added to computer hacking lawsuit against ex-Michigan OC Matt Weiss
Los Angeles Chargers coach Jim Harbaugh has been added as a defendant in a class-action lawsuit filed by 11 anonymous students against former University of Michigan offensive coordinator Matt Weiss, who has been accused of hacking the email, social media and cloud storage accounts of thousands of female athletes and downloading intimate photos and videos. Advertisement The amended complaint, which was filed on Friday in U.S. District Court in Michigan, claims that Harbaugh, who was the coach of Michigan at the time of Weiss's employment, and university officials knew that Weiss had been accessing the plaintiffs' private information when they allowed him to coach in the Fiesta Bowl on Dec. 31, 2022. Weiss's access to the plaintiffs' private information between Dec. 21 and Dec. 23 was reported to university police prior to the College Football Playoff game, the lawsuit says. Along with Harbaugh, athletic director Warde Manuel and former university president Santa Ono were added to the complaint. 'Naming head coach Jim Harbaugh and athletic director Warde Manuel in this complaint reflects our belief that leadership at the highest levels either knew of these threats or deliberately ignored them, prioritizing athletic prestige and profit over the safety and dignity of students,' attorney Parker Stinar said in an emailed statement. 'By placing athletic success and financial interests above accountability, transparency, and student welfare, the University failed in its basic duty of care.' Michigan lost the playoff game 51-45 to TCU and Weiss was placed on administrative leave two weeks later before being fired by the end of January. Weiss was indicted in March on 14 counts of unauthorized access to computers and 10 counts of aggravated identity theft. The charges carry a maximum sentence of more than 90 years in prison. Weiss entered a not guilty plea and awaits trial in November in a federal courthouse. Harbaugh has previously said that he didn't learn of allegations involving Weiss until after the Fiesta Bowl. 'Shocked,' Harbaugh said to reporters in March at the NFL Annual Meeting when asked about his reaction to the indictment. 'Completely shocked. Disturbed.' Advertisement Michigan and the Chargers did not respond to requests for comment. The lawsuit was originally filed in March and is one of multiple civil cases filed by female student-athletes against Weiss. Authorities say Weiss gained access to databases maintained by Keffer Development Services. The databases held athletes' personal information, including encrypted passwords. Keffer Development Services was listed as an original defendant in the civil lawsuit filed by the plaintiffs represented by Stinar. Prior to his time at Michigan, Weiss worked under John Harbaugh as an assistant coach with the Baltimore Ravens from 2009 to 2020. Allegations of computer hacking against Weiss date to 2015, when he was with Baltimore. Weiss's coaching career began in 2005 as a graduate assistant under Jim Harbaugh at Stanford.
Associated Press
3 days ago
- Business
- Associated Press
Compass Diversified (CODI) Situation Worsens, Admits Accounting Irregularities During 2022 - 2024, Expanded Class Period In Amended Securities Class Action Complaint
SAN FRANCISCO, June 27, 2025 (GLOBE NEWSWIRE) -- After hours on June 25, 2025, Connecticut-based private equity firm Compass Diversified (NYSE: CODI) filed a report with the SEC warning investors not to rely on previously issued financial statements for its fiscal years ended- and interim periods within- December 31, 2022 and 2023, citing an expanded scope of previously disclosed accounting irregularities. 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: 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 Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
Yahoo
4 days ago
- Business
- Yahoo
Pluralsight moving headquarters to Texas, laying off 17% of workforce
Utah-borne online education company Pluralsight on Thursday announced it is laying off 17% of its global workforce and moving its corporate headquarters from Utah to Westlake, Texas. 'Over the past year, we have been transforming our business to position the company for sustained growth and to enhance the value we provide for our customers,' Pluralsight CEO Erin Gajdalo said in a statement. 'As we focus on the growth and sustainability of our business, we determined that a new and rightsized headquarters is in the best interest of Pluralsight.' The new headquarters in Texas will add another location to the company's lineup that already includes Dublin, India, Austin, Texas and, of course, Draper. Despite moving headquarters, Gajdalo said the company won't soon forget its Utah roots. 'To our team members, partners, and customers in the Salt Lake area and Utah more broadly, we remain fully committed to serving you with excellence, and we expect our total employee population in the state to remain consistent,' Gajdalo said. 'Utah is where Pluralsight was founded more than 20 years ago and we are grateful to the state for the important role it has played in Pluralsight's history.' The latest move comes four months after Pluralsight reached a settlement agreement in a class action lawsuit, agreeing to split $20 million among tens of thousands of investors who purchased stock in 2018 and 2019. The suit was originally filed in the U.S. District Court for the Southern District of New York in August 2019 and transferred to the District of Utah two months later. A handful of public employee retirement funds alleged that the company and some executives misled investors about the 'size and productivity of Pluralsight's sales force,' artificially inflating the stock price before and during a secondary public offering, before 'disappoint(ing) financial results' and the resignation of an executive caused shares to plummet in value by almost 40%, court documents say.
Yahoo
4 days ago
- Business
- Yahoo
Hims & Hers Health (NYSE:HIMS) Faces Class Action After Partnership Termination With Novo Nordisk
Hims & Hers Health has experienced a tumultuous quarter, marked by Novo Nordisk's termination of their collaboration after allegations of unsafe practices, resulting in a 35% drop in the company's share price. This partnership termination, alongside a class action lawsuit alleging misleading statements about safety and operational risks, contributed to heightened market volatility. Despite a remarkable quarterly earnings report with substantial sales and net income growth, these positive results were not enough to counter the adverse effects of legal and partnership challenges, as evidenced by the overall 30% price move compared to a 2% market rise. You should learn about the 1 warning sign we've spotted with Hims & Hers Health. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 24 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent developments involving Hims & Hers Health, particularly the partnership termination with Novo Nordisk and the class action lawsuit, could substantially alter the company's projected growth trajectory. These events may influence the narrative of future revenue and earnings, as they introduce uncertainties around safety and operations. The fallout from these challenges might stymie anticipated gains from the company's AI and personalized treatment initiatives, and could potentially disrupt the planned expansion into chronic condition markets. Hims & Hers shares have demonstrated substantial resilience over a longer-term horizon, with a very large total shareholder return of 792.46% over three years. This indicates strong historical performance amidst present volatility, setting it apart in performance metrics compared to peers and markets. Although it surpassed the US healthcare industry, which saw a decline of 18.5% over the past year, it faces pressure to justify its future earnings potential amidst current challenges. The latest news implicating safety and operational integrity could necessitate reevaluation of revenue and earnings forecasts. The analysts' future projections, which included expectations of significant revenue growth and margin improvements, might be impacted by these unfolding events, casting doubt on their sustainability. Furthermore, given the current share price movement and the disparities in analyst price targets, with a consensus of $48.53, the company's journey to align its market position with these targets seems increasingly complex. With the analysts projecting a 17.19% discount to the price target, market confidence in future growth must counteract the recent adverse headlines to achieve such valuations. Understand Hims & Hers Health's track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:HIMS. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
