Deadline Soon: Compass Group Diversified Holdings (CODI) Investors Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming July 8, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Compass Group Diversified Holdings (“Compass” or the “Company”) (NYSE: CODI) securities between February 24, 2022 and May 7, 2025, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON COMPASS GROUP DIVERSIFIED HOLDINGS (CODI), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

On May 7, 2025, after the market closed, Compass disclosed that its financial statements for fiscal year 2024 should no longer be relied upon in response to an ongoing internal investigation into the Company’s subsidiary, Lugano Holding, Inc. The Company revealed that the investigation “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices.” Additionally, the Company disclosed that it would delay the filing of its first quarter 2025 10-Q.

On this news, Compass’ stock price fell $10.70, or 62%, to close at $6.55 per share on May 8, 2025, thereby injuring investors.

What Is the Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) certain unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Compass’ subsidiary, Lugano Holding, Inc.; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Compass securities between February 24, 2022 and May 7, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is July 8, 2025.

Contact Us to Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:

Frank R. Cruz
The Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, California 90067
Email us at: [e-mail]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.