Shares of Compass Diversified (“CODI”) fell over 59% in intraday trading on Thursday, May 8, 2025, after the company disclosed that its financial statements for fiscal year 2024 should no longer be relied upon due to an ongoing internal investigation into the company’s subsidiary, which "preliminarily identified irregularities" in the subsidiary’s “financing, accounting, and inventory practices.” The company announced it will also delay its quarterly earnings and filing of its 2025 Q1 Form 10-Q. Gibbs Mura is investigating a potential Compass Diversified (NYSE: CODI) Securities Class Action Lawsuit on behalf of shareholders who lost money in Compass Diversified.

What Should Compass Diversified Investors Do?

If you invested in Compass Diversified, visit our Compass Diversified Lawsuit Investigation webpage, or call us at (888) 410-2925 to get more information about how you may be able to recover your losses. Our investigation concerns whether Compass Diversified has violated federal securities laws by providing false or misleading statements to investors.

What is the Compass Diversified (CODI) Lawsuit Investigation About?

After the market closed on May 7, 2025, Compass Diversified disclosed that its financial statements for fiscal year 2024 should no longer be relied upon due to an ongoing internal investigation into the Company’s subsidiary, Lugano Holding, Inc. The ongoing investigation “preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices,” leading the Audit Committee of CODI’s Board to conclude that the previously issued 2024 financial statements require restatement. The company will also delay its quarterly earnings and the filing of its 2025 Q1 Form 10-Q.

Additionally, Compass Diversified revealed that Lugano's founder and CEO, Moti Ferder, had “resigned from all of his positions at Lugano and will not receive any severance compensation.”

Following this news, shares of Compass Diversified dropped over 59% in intraday trading on May 8, 2025, causing harm to investors.

About Gibbs Mura, A Law Group

Gibbs Mura represents investors nationwide in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”

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