Johnson Fistel, PLLP is investigating whether Compass Diversified (NYSE: CODI) or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose information to investors.

What if I purchased Compass securities? If you purchased securities and suffered losses on your investment, join our investigation now:

https://www.cognitoforms.com/JohnsonFistel/CompassDiversifiedNYSECODI

For more information, contact Jim Baker at jimb@johnsonfistel.com or (619) 814-4471

There is no cost or obligation to you.

What is Johnson Fistel investigating? On May 7, 2025, following the close of trading, Compass Technologies filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing that its Audit Committee had initiated an internal investigation into the financing, accounting and inventory practices of Lugano Holding, Inc., a wholly owned subsidiary and operating segment of the Company. The Audit Committee’s inquiry was launched in response to concerns raised to Company management regarding potential irregularities in Lugano’s financial and operational records.

According to the 8-K, the ongoing investigation is focused on certain unrecorded financing arrangements and identified anomalies in sales, cost of sales, inventory valuations and accounts receivable as reflected in Lugano’s books. While the inquiry remains in its preliminary stages, the Audit Committee has reported that the scope and materiality of the matters uncovered to date are significant. As a result, Compass Technologies has determined that its consolidated financial statements and related disclosures for the fiscal year ended December 31, 2024 can no longer be relied upon.

Simultaneously, Compass announced that Mordechai Haim “Moti” Ferder has resigned as Chief Executive Officer of Lugano, effective May 7, 2025, and has relinquished all offices and directorships he held with Lugano and its affiliates.

About Johnson Fistel, PLLP | Top Law Firm, Securities Fraud, Investors Rights:

Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. We also extend our services to foreign investors who have purchased on US exchanges. Stay updated with news on stock drops and learn how Johnson Fistel, PLLP can help you recover your losses. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.

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As a result, Compass Technologies has determined that its consolidated financial statements and related disclosures for the fiscal year ended December 31, 2024 can no longer be relied upon.