Barrack, Rodos & Bacine Notifies Shareholders of Compass Group Diversified Holdings LLC (CODI) of a Securities Class Action Lawsuit

/EIN News/ -- PHILADELPHIA, May 21, 2025 (GLOBE NEWSWIRE) -- The law firm of Barrack, Rodos & Bacine announces that a class action lawsuit has been filed on behalf of investors who purchased stock in Compass Group Diversified Holdings, LLC (NYSE: CODI) between May 1, 2024, and May 7, 2025. Compass is an investment holding company and one of its subsidiary businesses is Lugano Holdings, Inc., a jewelry company.

WHAT’S THIS ABOUT?
On March 7, 2025, Compass announced that an ongoing investigation into Lugano had “preliminarily identified irregularities” in Lugano’s “accounting and inventory practices.” Compass’s “concerns about how Lugano was potentially financing inventory” led the Audit Committee of the Compass Board to conclude that its previously issued financial statements for 2024 should no longer be relied upon. The company further concluded that it intended to delay filing its Form 10-Q for the first quarter of 2025. 

Compass also announced that Lugano’s founder and CEO, Moti Ferder, had resigned, effective immediately, and would not receive severance compensation.

On this news, Compass’s share price fell 62%, or $10.70 per share, from $17.25 on the market’s close on May 7 to $6.55 at the close the following day.

The Complaint alleges that Compass had failed to maintain adequate internal controls over its financial statements, rendering them unreliable and misleading.

WHAT CAN I DO
If you purchased Compass stock during the Class Period and sustained a loss on your investment, you are encouraged to contact us about your rights in this matter and the possibility of leading this class action lawsuit. You may contact the firm by calling Linda Border or Mark Stein at 877-386-3304, or via email at investoralert@barrack.com, or visiting the firm’s web site (barrack.com).

Investors have until July 8, 2025, to submit a motion to be appointed as lead plaintiff. Your ability to participate in any recovery does not require that you serve as lead plaintiff or attempt to do so.

WHO WE ARE
Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.