SAN FRANCISCO, CA – (May 16, 2025) – National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Compass Diversified Holdings (“Compass”) (NYSE: CODI) who purchased or otherwise acquired publicly traded Compass securities between May 1, 2024 and May 7, 2025, inclusive (the “Class Period”) to contact us immediately regarding pending securities class actions against Compass. The deadline to apply to be lead plaintiff is July 8, 2025.

Class Period: May 1, 2024 – May 7, 2025
Lead Plaintiff Motion Deadline: July 8, 2025
Case information: https://lieffcabraser.com/securities/codi
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358

Compass, a statutory trust headquartered in Westport, Connecticut, and Compass Group Diversified Holdings, LLC (together, the “Company”) acquire and manage a group of small and middle-market businesses, including Lugano Holdings, Inc. (“Lugano”), a designer, manufacturer, and marketer of high-end jewelry.

The actions allege that, throughout the Class Period, the Company and certain of its senior executives failed to disclose to investors that: (1) the Company’s subsidiary Lugano maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable for the entirety of fiscal year 2024; (2) the irregularities and undisclosed details in Lugano’s financial statements rendered Compass’s financial statements unreliable; and (3) Compass failed to maintain adequate internal controls over its financial statements.

On May 7, 2025, after market close, Compass announced that its 2024 financial statements should no longer be relied upon, as an ongoing investigation had identified “irregularities in Lugano’s non-CODI financing, accounting, and inventory practices.”  Compass also announced that it intended to delay release of its Q1 2025 Form 10-Q, that Lugano’s founder and CEO Mordechai Ferder resigned from all positions he held at Lugano, and that Ferder would not be receiving any severance compensation. On this news, Compass’s common stock price fell $10.70 per share, or 62%, from its closing price of $17.25 per share on May 7, 2025, to close at $6.55 per share on May 8, 2025, on heavy trading volume.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.

Source/Contact

Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee @ lchb.com

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