Levi & Korsinsky Files Class Action Lawsuit Against Compass Diversified Holdings.
Investors who held shares of Compass Group Diversified Holdings (NYSE:CODI) between May 1, 2024, and May 7, 2025, may be eligible to participate in a securities class action lawsuit currently underway.
The lawsuit, filed by Levi & Korsinsky, LLP, follows a sharp decline in Compass stock dropping over 60% in a single day, after the company announced an internal financial investigation involving a key subsidiary.
On May 8, 2025, Compass shares fell from $17.25 to $6.55 after the company revealed that its 2024 financial statements could no longer be relied upon, a disclosure that took many investors by surprise.
The complaint alleges that Compass Group Diversified Holdings misled investors by:
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Failing to fix or disclose weaknesses in its financial oversight
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Keeping quiet about questionable financing linked to Lugano Holding, Inc., one of its subsidiaries
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Overlooking red flags in Lugano’s sales figures, cost reporting, and inventory records
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Making upbeat public statements that didn’t reflect what was really happening behind the scenes
Things came to a head after the market closed on May 7, when Compass revealed that its audit committee had launched an internal investigation into how Lugano may have been funding its inventory.
That same day, Lugano’s founder and CEO, Moti Ferder, resigned abruptly without severance, further deepening investor concerns.
If you bought Compass stock during the affected time period and suffered a financial hit, Levi & Korsinsky may be able to help you recover your losses.
🔗 Submit your information here
Or reach out directly to discuss your potential claim:
Email: jlevi@levikorsinsky.com
Phone: (212) 363-7500
Contact: Joseph E. Levi, Esq., Founding Partner at Levi & Korsinsky, LLP
Compass Diversified (NYSE: CODI) is a long-term holding company that invests in middle-market businesses with strong growth potential. Founded in 1998, CODI provides permanent capital and strategic support while allowing its subsidiaries to operate independently. The company is guided by core values of integrity, accountability, humility, passion, and collaboration.
Levi & Korsinsky LLP is a recognized leader in securities litigation, with a track record of recovering hundreds of millions of dollars for shareholders over the past two decades. With a dedicated team of over 70 professionals, the firm specializes in complex securities cases and has been featured in ISS Securities Class Action Services' Top 50 Report for seven consecutive years.
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