Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the publicly traded securities of Compass Diversified Holdings (“Compass”) (NYSE: CODI) between May 1, 2024 and May 7, 2025, inclusive (the “Class Period”).

If you purchased or acquired Compass securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 8, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Compass investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Sharon M. Lee of Lieff Cabraser at 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.

Read our Securities and Investment Fraud Practice Area brochure