Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a shareholder and consumer rights litigation firm, is investigating whether Compass Diversified Holdings (“Compass” or the “Company”) (NYSE: CODI) or certain of its officers and directors issued misleading and false statements and/or failed to disclose information material to investors in violation of federal securities laws.
Compass owns and manages a diverse set of middle-market businesses, including Lugano Holdings, Inc. (“Lugano”), which designs, manufacturers, and markets luxury jewelry.
On May 7, 2025, after market hours, the Company issued a press release disclaiming “reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation” into Lugano, and that the Company intends to delay the filing of its 1Q25 Form 10-Q. The press release also revealed that an ongoing investigation, led by outside counsel and a forensic accounting firm, “preliminarily identified irregularities in Lugano’s [non-Compass] financing, accounting, and inventory practices.” Lugano’s founder and Chief Executive Officer resigned following the disclosure of the investigation’s preliminary findings. On this news, the price of the Company’s stock fell $10.70, or nearly 62%, to close at $6.55 on May 8, 2025, on unusually high volume.
If you purchased or otherwise own Compass securities and have suffered a loss, realized or unrealized, and you wish to discuss this investigation, please contact attorney Nicholas Bruno at (888) 398-9312 or at [email protected].