#United States #New York #Class Action #Compass Group #CODI

Join the Class Action Against Compass Group Diversified Holdings

On June 30, 2025, The Gross Law Firm announced an important notice for shareholders of Compass Group Diversified Holdings, LLC, commonly referred to as CODI. This marks a pivotal moment for investors who may have experienced significant losses during a turbulent financial period for the company. Shareholders are urged to participate in a class action lawsuit aimed at holding the company accountable for alleged misrepresentations.

Deadline to Act

All CODI shareholders who purchased shares between February 24, 2022, and May 7, 2025, are encouraged to register with the Gross Law Firm by the fast-approaching deadline of July 8, 2025. This timeline is critical for those looking to recover losses that might have occurred due to the alleged failure of the company to adhere to proper financial reporting practices.

Allegations Against Compass Group

The lawsuit's claims center around accusations that Compass failed to disclose significant information related to its financial controls and operations. Specifically, it has been alleged that Compass did not adequately communicate issues concerning its subsidiary, Lugano Holding Inc. Reports suggest that there were undisclosed financing arrangements and that Lugano exhibited irregularities in key financial areas such as sales and inventory management.

This situation culminated in a significant announcement on May 7, 2025, when Compass declared that its financial statements for the fiscal year 2024 were no longer reliable due to ongoing internal investigations. The company's Audit Committee initiated this investigation upon identifying concerns about how Lugano was funding its inventory. Following these revelations, the company also announced the resignation of Lugano's founder and CEO, Moti Ferder, who will not receive any severance pay.

As a direct consequence of this news, the stock price of Compass plummeted from $17.25 per share on the day of the revelation to only $6.55 the following day, causing substantial losses for shareholders.

How to Participate

To participate in this class action and to be considered for lead plaintiff status — which, while not required for recovery, may offer some beneficial involvement — shareholders need to register their information through the Gross Law Firm's designated link. Customers will then receive access to a portfolio monitoring service, which will provide regular updates on the case's status.

Next Steps for Investors

For those affected, it’s crucial to act promptly. The class action serves as a pathway to recover investments lost due to alleged negligence in corporate reporting standards. There is no financial obligation to register, making this a risk-free opportunity for shareholders to engage with the legal process.

Why Choose the Gross Law Firm?

The Gross Law Firm has established itself as a leader in class action lawsuits, focusing on protecting the rights of investors who have fallen prey to deceitful practices in the corporate world. Their commitment to ensuring corporate accountability is reflected in their diligent approach to litigation. The firm emphasizes its mission to hold companies to their ethical responsibilities and advocate for the rights of all investors impacted by misleading corporate communications.

Contact The Gross Law Firm at 15 West 38th Street, 12th Floor, New York, NY, 10018, or by emailing [email protected]. Investors can also reach the firm directly by phone at (646) 453-8903 for any inquiries related to the class action or the registration process.

Act quickly to protect your investments and ensure your voice is heard in this critical case. Register before July 8, 2025, to secure your potential recovery from the class action against Compass Group Diversified Holdings.