#United States #New York #Class Action #Levi Korsinsky #Compass Diversified

Important Notice for Investors of Compass Group Diversified Holdings, LLC

Levi & Korsinsky LLP has announced that it is reaching out to investors who faced losses due to their investments in Compass Group Diversified Holdings, LLC (ticker: CODI). A class action securities lawsuit has been initiated to recover these losses. The litigation targets alleged fraudulent activities related to the company's financial reporting.

Background of the Case

The lawsuit involves a significant period of irregularity, specifically between May 1, 2024, and May 7, 2025. During this time, it is claimed that the company failed to adequately inform its investors about critical internal control weaknesses over financial disclosures. In particular, questions have arisen regarding its subsidiary, Lugano Holding, Inc., which reportedly had undisclosed financing arrangements and various irregularities in its operational assessments, notably in sales, cost of sales, inventory, and accounts receivable.

The situation escalated when on May 7, 2025, Compass Group announced post-market that its fiscal statements from 2024 were under scrutiny due to an internal investigation centered on Lugano’s financial practices. As a consequence, it confessed that the claims of positive financial performance had been misleading. The company revealed its Audit Committee was investigating concerns related to how Lugano financed its inventory. Not only did this announcement trigger a plummet in Compass' share price—from $17.25 to $6.55 in just one day—but it also led to the resignation of Lugano’s CEO, Moti Ferder, without any severance compensation.

What Investors Should Do

If you believe you have incurred losses during this time frame, it is essential to take action. You have until July 8, 2025, to request being appointed as the lead plaintiff in this class action lawsuit. It's important to note that one does not need to serve as the lead plaintiff to be eligible for any potential recovery—your involvement can still be significant.

No Cost to Participants

This opportunity does not require out-of-pocket expenses for class members. Participation comes with no financial burden, and those affected by the alleged securities fraud can seek compensation without any obligation to pay fees upfront.

The Expertise of Levi & Korsinsky

With over 20 years of experience, Levi & Korsinsky has a strong history of attaining substantial settlements for aggrieved shareholders and has successfully handled complex securities litigation cases. The firm’s outstanding reputation is bolstered by a skilled team dedicated to serving its clients, securing its place among the top 50 securities litigation firms in the United States for seven consecutive years according to ISS Securities Class Action Services.

Contact Information

For more details or to discuss your case, reach out to:

• - Joseph E. Levi, Esq. at [email protected]
• - Phone: (212) 363-7500
• - Company Address: 33 Whitehall Street, 17th Floor, New York, NY 10004

If you're an investor in Compass Group Diversified Holdings, don't miss this opportunity to seek justice and potentially recover your losses through this class action lawsuit.