Levi & Korsinsky Alerts Compass Diversified Shareholders on Lawsuit Deadline

Levi & Korsinsky Notifies Investors About Class Action Lawsuit



Levi & Korsinsky, LLP is reaching out to shareholders of Compass Group Diversified Holdings, LLC, commonly referred to as Compass Diversified or CODI, regarding an important update related to an ongoing class action securities lawsuit. Shareholders must take action before July 8, 2025, to potentially serve as lead plaintiffs in this case, which seeks to recover losses for those adversely affected by alleged securities fraud.

The class action covers a time frame from February 24, 2022, to May 7, 2025, during which investors faced significant losses. According to the lawsuit, key details were withheld from shareholders concerning internal controls over the company’s financial reporting and undisclosed financing issues related to its subsidiary, Lugano Holding, Inc.

Background on the Allegations



Throughout the class period, defendants are accused of failing to inform investors about critical information, including the company's lack of effective financial reporting controls and undisclosed financial arrangements concerning Lugano. This lack of transparency led to misleading statements regarding the company's financial health, which is at the center of the allegations.

On May 7, 2025, the situation for Compass Diversified deteriorated. The company announced that its financial statements for the fiscal year 2024 could no longer be relied upon following an internal investigation into Lugano. Concerns were raised regarding the financing of inventory, prompting an investigation by the company’s Audit Committee. Diving deeper, shareholders learned that Moti Ferder, Lugano’s founder and CEO, resigned effective that date without any severance compensation, indicating the severity of the situation.

The impact of this announcement was immediate; the stock price plummeted from a closing price of $17.25 per share on May 7, 2025, to a staggering $6.55 per share the following day, highlighting the severe repercussions of these disclosures on investors.

What’s Next for Shareholders?



For shareholders who experienced losses in the period outlined, the window to initiate actions is closing soon. They have until July 8, 2025, to request the court appoint them as lead plaintiffs in the lawsuit. However, it’s important to note that participation in any recovery does not necessitate serving as a lead plaintiff, thereby allowing more investors to potentially seek compensation.

Entering the lawsuit incurs no costs for individuals involved; class members could receive compensation without upfront expenses.

Why Choose Levi & Korsinsky?



Levi & Korsinsky brings over 20 years of experience advocating for investors, having successfully recovered hundreds of millions of dollars for aggrieved shareholders. With over 70 employees specializing in complex securities litigation, this firm stands out for its commitment and ability to handle high-stakes cases. They have earned a consistent ranking over seven consecutive years in ISS Securities Class Action Services' Top 50 Report, establishing their reputation as a leading securities litigation firm in the United States.

For those requiring guidance or further information, Joseph E. Levi, Esq. at Levi & Korsinsky is available for inquiries. Interested parties are encouraged to reach out via email or phone to learn more about their rights in this class action lawsuit.

Company Contact Information



Levi & Korsinsky, LLP
33 Whitehall Street, 17th Floor
New York, NY 10004
Email: [email protected]
Phone: (212) 363-7500

Taking action is crucial for affected investors; the deadline is fast approaching.

Topics Financial Services & Investing)

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