On May 7, 2025, Compass Diversified Holdings, a statutory trust based in Westport, Connecticut, revealed significant accounting issues related to its subsidiary, Lugano Holdings, Inc. The company announced that its 2024 financial statements should no longer be relied upon due to "irregularities in Lugano's non-CODI financing, accounting, and inventory practices." This disclosure led to a steep 62% drop in Compass's stock price, closing at $6.55 per share on May 8, 2025. Furthermore, on June 25, 2025, Compass extended this advisory to its 2022 and 2023 financial statements. These revelations have triggered a securities class action, with allegations that Compass and its executives failed to disclose significant financial irregularities during the period from February 4, 2022, to May 7, 2025. Investors are urged to contact Lieff Cabraser Heimann & Bernstein, LLP before the lead plaintiff motion deadline on July 8, 2025.
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