ONGOING DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Compass Diversified
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Compass To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Compass stock or options between May 1, 2024 and May 7, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 1, 2025) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Compass Diversified ('Compass' or the 'Company') (NYSE: CODI) and reminds investors of the July 8, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
[ This image cannot be displayed. Please visit the source: https://images.newsfilecorp.com/files/6455/254011_7a509ecf94e2993e_001full.jpg ]
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable; (2) the irregularities and undisclosed details in Lugano Holdings, Inc.'s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement; (3) the Company failed to maintain adequate internal controls related to its financial statements; and (4) as a result, defendants' public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On May 7, 2025, after the market closed, the Company disclosed that its financial statements for fiscal year 2024 should no longer be relied upon in response to an ongoing internal investigation into the Company's subsidiary, Lugano Holding, Inc. The Company revealed that the investigation 'has preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices' and that "[e]ffective May 7, 2025, Lugano's founder and CEO, Moti Ferder, resigned from all of his positions at Lugano and will not receive any severance compensation.'
On this news, Compass Diversified stock price fell 8% during after-hours trading on May 7, 2025, thereby injuring investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Compass' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Compass Diversified investigation, go to www.faruqilaw.com/CODI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254011
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
37 minutes ago
- CNN
Three attacks in two months: Why American Jews are on edge
CNN's Bianna Golodryga breaks down the three high-profile recent attacks on Jewish elected officials, diplomats and community events that are putting American Jews and government officials on edge.
Associated Press
39 minutes ago
- Associated Press
Versatile Jerar Encarnación returns to Giants after March surgery on his broken left hand
SAN FRANCISCO (AP) — Bob Melvin has been waiting for the chance to write Jerar Encarnación's name into San Francisco's lineup. The versatile Encarnación came off the 60-day injured list Monday and was available for the opener of a four-game series with the San Diego Padres at Oracle Park, though not yet in the starting lineup. Melvin hopes that he could start Tuesday — whether that's at first base or in right field. Encarnación underwent surgery in March on his broken left hand after he was injured trying to make a diving catch during spring training. He batted .302 with two home runs and 14 RBIs in Cactus League play after hitting .248 with five home runs and 19 RBIs in 113 at-bats last year. 'We know he can give us some power and he's got power to all fields,' Melvin said. 'We saw it at the end of last year, we saw it in spring training. When we were about to leave spring training there were going to be a lot of at-bats for him.' The Giants could use a big boost at the plate, and Encarnación hopes to deliver. 'I'm just going to do what I'm able to do to contribute to the team,' said Encarnación, a Dominican Republic native who made his major league debut with Miami in 2022 and joined the Giants as a free agent last May. The Giants optioned outfielder Luis Matos to Triple-A Sacramento so he can further develop and play regularly. San Francisco returned home having dropped five of nine games on its road trip to Washington, Detroit and Miami. The Giants entered Monday having scored only 30 runs over their last 14 games — the club's fewest in such a stretch since being limited to 28 runs from June 20-July 5, 2013. 'That's the good thing about him is he can play multiple positions, he can pinch hit,' Melvin said. 'It's nice to have him back. Spring training we were talking about how impactful he was going to be. He was having a great spring and next thing you know he's out for a while. He feels good at the plate, he hit some home runs the last couple days, he's ready to go.' Encarnación has been eager to rejoin the Giants, but embraced his faith and that it took the time it did for him to fully recover and come back. He missed the first 59 games, then made seven rehab appearances with Triple-A Sacramento last week, playing three games at first base, starting two as designated hitter and two more in right field. 'I'm so happy and content that I'm here,' he said, before adding with a smile a few minutes later that he's 'great, muy bueno.' ___ AP MLB:
CBS News
44 minutes ago
- CBS News
Florida restaurants must disclose automatic tips and fees under new law
Restaurants will have to make clear to customers upfront when they will be hit with automatic tips or service fees, under a bill signed Monday by Gov. Ron DeSantis. While the primary focus of the bill involved the removal of non-paying guests from hotels, the measure (SB 606) also will require notifications from "public food service establishments that charge an operations charge," which is an automatic fee other than a tax. The law, which will take effect July 1, requires notices of fees on menus, websites or mobile apps where orders are placed. Addressing hidden fees in dining Many restaurants already impose automatic tips or service charges for large parties. But the issue was pushed in the Legislature after Rep. Demi Busatta, a Coral Gables Republican who grew up in the restaurant industry, told a House panel in March that she had received a restaurant bill that had a service fee and a pre-set gratuity, along with a line to include a tip. "In Miami, we've seen a growing circumstance where all the restaurants are automatically including a 20 percent gratuity, or they're calling it gratuity or service charge or service fee or tip, not just on regular sitdown meals but on take-out as well at fast-casual establishments," Busatta said at the time. For restaurants that don't provide menus or such things as table service, the bill says notices "must appear in an obvious and clearly readable manner on the menu board or on an obvious and clearly readable sign by the register where the customer pays."
