#USA #Los Angeles #Schall Law Firm #Compass Diversified #CODI Securities

CODI Investors Targeted in Class Action Lawsuit

The Schall Law Firm has announced that it will lead a class action lawsuit against Compass Diversified Holdings, commonly referred to as CODI. This lawsuit comes in response to serious allegations of misleading financial practices and lack of transparency in the Company's financial reporting. The class period for affected investors is noted as May 1, 2024, to May 7, 2025. Investors who had purchased CODI securities during this time frame are encouraged to take action before the deadline of July 8, 2025.

Allegations Against Compass Diversified

According to the allegations set forth in the complaint, Compass Diversified Holdings, a company listed on the New York Stock Exchange under the ticker symbol CODI, has violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Furthermore, the complaint claims that the Company made false and misleading statements concerning its financial health. Key issues arose from Lugano Holdings Inc., a subsidiary of Compass, which reportedly failed to maintain proper records of its financial transactions. This oversight has resulted in discrepancies in crucial financial metrics, such as sales, cost of sales, inventory, and accounts receivable.

The failure to uphold appropriate internal financial controls has rendered Compass’s financial statements unreliable. As a direct consequence, it’s asserted that the company's public disclosures were not only misleading but caused considerable financial harm to its investors when the truth eventually emerged. These issues require Compass to restate its financial reports, based on the irregularities identified in Lugano. Investors are now seeking recourse through this class action lawsuit as they have suffered losses tied to the incorrect assessments of the company’s financial standing.

Steps for Affected Investors

Investors who believe they are eligible to participate in this class action are urged to reach out to the Schall Law Firm to discuss their rights. Free consultations are being offered to potential class members. It’s essential for investors to act promptly and secure their representation before the lawsuit period closes. Detailed information about participation can be accessed through the Schall Law Firm's website or by contacting Brian Schall directly at the Los Angeles office.

While the class has yet to receive certification, timely action is crucial. Investors who decide to remain inactive will be considered absent class members. Given the potential ramifications and the complexity involved in securities fraud cases, affected individuals are highly encouraged to engage in this process.

Contact Information

If you are an affected shareholder of Compass Diversified Holdings and have experienced financial losses due to the alleged misleading financial statements, now is the time to act. Contact info for the Schall Law Firm is as follows: 2049 Century Park East, Suite 2460, Los Angeles, CA 90067. Investors can call the firm at 310-301-3335 or visit their website at www.schallfirm.com for more information and next steps.

This alert serves as a reminder that protecting investor rights is paramount, and the Schall Law Firm is committed to representing those who have been misled in their investment pursuits. As this situation develops, the implications for Compass and its investors will continue to unfold, making vigilance essential for those impacted by these allegations.