Latest news with #CompassDiversified
Globe and Mail
08-07-2025
- Business
- Globe and Mail
FINAL DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Compass Diversified
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. 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 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 or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( 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.
Associated Press
06-07-2025
- Business
- Associated Press
CODI SHAREHOLDER ALERT: Suffer Losses on Compass Diversified Holdings? Contact BFA Law by Tuesday's July 8 Securities Fraud Class Action Deadline (NYSE:CODI)
NEW YORK, July 06, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Compass Diversified Holdings and Compass Group Diversified Holdings, LLC (NYSE: CODI) and certain of the Company's senior executives for potential violations of the federal securities laws. If you invested in Compass you are encouraged to obtain additional information by visiting Investors have until July 8, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Compass securities. The case is pending in the U.S. District Court for the Central District of California and is captioned Matthews v. Compass Group Diversified Holdings, Inc., et al., No. 25-cv-981. Why was Compass Sued for Securities Fraud? Compass is a statutory trust that acquires and manages a group of small and middle-market businesses. This includes Lugano Holdings, Inc. ('Lugano'), a designer, manufacturer, and marketer of high-end jewelry. Compass admitted that its fiscal 2022-2024 financial statements contained material misstatements relating to unrecorded financing arrangements and irregularities identified in sales, cost of sales, inventory, and accounts receivable recorded by Lugano. The Stock Declines as the Truth is Revealed On May 7, 2025, after the market closed, Compass announced that investors should not rely on its fiscal 2024 financial statements amid an ongoing internal investigation, led by outside counsel and a forensic accounting firm, into Lugano. The Company also announced that it intended to delay the filing of its Q1 2025 financial results, and that Lugano's founder and CEO, Moti Ferder, resigned from his positions at Lugano and will not receive any severance compensation. On this news, the price of Compass stock declined roughly 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025. Then, on June 25, 2025, Compass announced that investors should not rely on its fiscal 2022 and 2023 financial statements amid the ongoing internal investigation into Lugano. Click here if you suffered losses: What Can You Do? If you invested in Compass you may have legal options and are encouraged to submit your information to the firm. All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses. Submit your information by visiting: Or contact: Ross Shikowitz [email protected] 212-789-3619 Why Bleichmar Fonti & Auld LLP? Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd. For more information about BFA and its attorneys, please visit Attorney advertising. Past results do not guarantee future outcomes.
Yahoo
04-07-2025
- Business
- Yahoo
Compass Diversified Declares Second Quarter 2025 Distributions on Series A, B and C Preferred Shares
WESTPORT, Conn., July 02, 2025 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) ('CODI' or the 'Company'), an owner of leading middle market businesses, announced today that its Board of Directors (the 'Board') has declared a quarterly cash distribution for each of its three preferred share series. This announcement underscores that in the wake of its ongoing investigation of Lugano, the Company's diversified business model supports its continued ability to generate strong cash flow. The Board declared a quarterly cash distribution of $0.453125 per share on the Company's 7.250% Series A Preferred Shares (the 'Series A Preferred Shares'). The distribution on the Series A Preferred Shares covers the period from, and including, April 30, 2025, up to, but excluding, July 30, 2025. The distribution for such period is payable on July 30, 2025, to all holders of record of Series A Preferred Shares as of July 15, 2025. The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company's 7.875% Series B Preferred Shares (the 'Series B Preferred Shares'). The distribution on the Series B Preferred Shares covers the period from, and including, April 30, 2025, up to, but excluding, July 30, 2025. The distribution for such period is payable on July 30, 2025, to all holders of record of Series A Preferred Shares as of July 15, 2025. The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company's 7.875% Series C Preferred Shares (the 'Series C Preferred Shares'). The distribution on the Series C Preferred Shares covers the period from, and including, April 30, 2025, up to, but excluding, July 30, 2025. The distribution for such period is payable on July 30, 2025, to all holders of record of Series A Preferred Shares as of July 15, 2025. CODI's preferred cash distributions should generally constitute 'qualified dividends' for U.S. federal income tax purposes to the extent they are paid from 'earnings and profits' (as determined under U.S. federal income tax principles), provided that the requisite holding period is met. To the extent that the amount of cash distributions exceeds earnings and profits, such distribution will first be treated as a non-taxable return of capital to the extent of the holder's adjusted tax basis in the shares and thereafter be treated as a capital gain from the sale or exchange of such shares. About Compass Diversified Since its IPO in 2006, CODI has consistently executed its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the branded consumer, industrial, healthcare, and critical outsourced services sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit Forward Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, CODI's expectations as to the timing and outcome of the Lugano investigation, CODI's credit availability and future liquidity, actions taken in response to the outcome of the investigation, the future performance of Lugano and CODI's other subsidiaries, the filing or delay of CODI's periodic reports, and the amount of any potential misstatements associated with Lugano and the impact any such misstatements may have on CODI's previously issued financial statements or results of operations. Such forward looking statements may be identified by, among other things, the use of forward-looking terminology such as 'believe,' 'expect,' 'may,' 'could,' 'would,' 'plan,' 'intend,' 'estimate,' 'predict,' 'potential,' 'continue,' 'should' or 'anticipate' or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on beliefs and assumptions by the Board of Directors and management, and on information currently available to CODI's Board of Directors and management. These statements involve risk and uncertainties that could cause CODI's actual results and outcomes to differ, perhaps materially, including but not limited to: the discovery of additional information relevant to the investigation; the conclusions (and timing of those conclusions) concerning matters relating to the investigation; the timing of the review by, and the conclusions of, Grant Thornton regarding the investigation and CODI's financial statements; a further material delay in CODI's financial reporting or ability to hold an annual meeting of stockholders; the impacts of restatement reviews; the likelihood that the control deficiencies identified or that may be identified in the future will result in material weaknesses in CODI's internal control over financial reporting; and commercial litigation relating to the investigation, including CODI's representations regarding its financial statements, and the possibility of future litigation or investigation relating to CODI's internal controls, restatement reviews, the investigation, or related matters. Please see CODI's Annual Report on Form 10-K for the year ended December 31, 2024 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements have been made. Except as required by law CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events. Investor RelationsCompass Diversifiedirinquiry@ Source: Compass Diversified HoldingsError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Compass Diversified (CODI) Grapples with Financial Irregularities, Slashes Dividend Amid Investor Lawsuit
SAN FRANCISCO, CA / / June 17, 2025 / Compass Diversified (NYSE:CODI), a Connecticut-based private equity firm, is navigating a turbulent period marked by the recent resignation of a key director, a precipitous stock decline, and a burgeoning class-action lawsuit, all stemming from unearthed accounting irregularities at one of its portfolio companies. Hagens Berman is investigating the claims and urges investors who purchased Compass shares and suffered substantial losses to submit your losses now. Class Period: May 1, 2024 - May 7, 2025 Lead Plaintiff Deadline: July 8, 2025 Visit: Contact the Firm Now: CODI@ 844-916-0895 Board Departure Amidst Mounting Corporate Woes Gordon M. Burns stepped down from Compass Diversified's board on June 7, 2025, a decision foreshadowed by his earlier choice not to seek re-election, citing other commitments. This departure coincides with a particularly fraught time for the firm, as it confronts the fallout from "troubling accounting practices" at Lugano Holdings, a high-end jewelry subsidiary acquired in 2021 for an enterprise value of $256 million. In response to the escalating crisis, the firm has enacted a series of urgent, decisive measures aimed at shoring up its financial position. These include securing a forbearance agreement with its lenders, implementing a reduction in management fees, and, notably, suspending its quarterly cash distribution - a payout highly valued by its income-focused investor base. Furthermore, Compass Diversified has announced a strategic re-prioritization, vowing to curtail new investment in Lugano Holdings. This recalibration is designed to reallocate resources and focus attention on its other eight portfolio companies, ostensibly to mitigate further contagion from the Lugano controversy. Securities Fraud Suit The revelation of these irregularities has ignited a securities class action lawsuit, Augenbaum v. Compass Diversified Holdings, No. 25-cv-01003 (C.D. Cal.). The lawsuit seeks to represent purchasers or acquirers of Compass Diversified Holdings' publicly traded securities between May 1, 2024, and May 7, 2025. The plaintiffs contend that during this "Class Period," defendants disseminated "false and/or misleading statements" and failed to disclose critical information. Specifically, the lawsuit alleges that Lugano Holdings contravened "applicable accounting rules and acceptable industry practices" concerning its financing, accounting, and inventory procedures throughout Compass Diversified's fiscal year 2024. Consequently, the lawsuit claims, Lugano's 2024 financial results were "artificially distorted." The complaint further asserts that Compass Diversified neglected to implement "effective internal controls" over its financial reporting, leading to materially misstated 2024 financial results that did not accurately reflect the company's true financial standing. The catalyst for the current turmoil was Compass Diversified's May 7, 2025, press release, titled "Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc." In this disclosure, the firm revealed that it had "preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices." Following discussions with senior leadership and investigators, the Audit Committee of CODI's Board concluded that "previously issued financial statements for 2024 require restatement and and should no longer be relied upon." The company also announced its intention to delay the filing of its first-quarter 2025 Form 10-Q. The market's immediate response was severe, with the price of Compass Diversified's stock plummeting by more than 62% on the news. The class action lawsuit charges Compass Diversified Holdings, Compass Group Diversified Holdings LLC, Compass Group Management LLC, and certain current and former top executives with violations of the Securities Exchange Act of 1934. Hagens Berman's Investigation Hagens Berman, a national investor rights law firm, has announced it is conducting its own investigation into potential securities violations by Compass Diversified. "The cascade of events, from the restatement of financials to the drastic measures to conserve cash, suggests a deeply entrenched issue at Lugano that Compass Diversified seemingly failed to adequately oversee," said Reed Kathrein, the partner at Hagens Berman leading the firm's probe. If you invested in Compass Diversified and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Compass Diversified case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Compass Diversified should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CODI@ # # # About Hagens BermanHagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at Follow the firm for updates and news at @ClassActionLaw. Contact:Reed Kathrein, 844-916-0895 SOURCE: Hagens Berman Sobol Shapiro LLP View the original press release on ACCESS Newswire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
03-07-2025
- Business
- Associated Press
CODI SHAREHOLDER ALERT: Hagens Berman Alerts Compass Diversified (CODI) Investors to Securities Class Action Over Accounting Irregularities, Encourages Investors with Losses to Contact the Firm Before July 8th Deadline
SAN FRANCISCO, July 03, 2025 (GLOBE NEWSWIRE) -- After hours on June 25, 2025, Connecticut-based private equity firm Compass Diversified (NYSE: CODI) filed a report with the SEC warning investors not to rely on previously issued financial statements for its fiscal years ended- and interim periods within- December 31, 2022 and 2023, citing an expanded scope of previously disclosed accounting irregularities. The firm is navigating a turbulent period marked a precipitous stock decline, burgeoning class-action lawsuits, and recent accounting malfeasance revelations at one of its portfolio companies now spanning its 2022 through 2024 fiscal years. Recently, the plaintiff in the action styled Moreno v. Compass Group Diversified Holdings LLC, Case No. 3:25-cv-00758 (D. Conn.) filed an amended complaint that now seeks to represent purchasers or acquirers of Compass Diversified Holdings' publicly traded securities during an expanded Class Period -- February 24, 2022 through May 7, 2025. Hagens Berman is investigating the claims and urges investors who purchased Compass shares and suffered substantial losses to submit your losses now. Expanded Class Period: Feb. 24, 2022 – May 7, 2025 Lead Plaintiff Deadline: July 8, 2025 Visit: Contact the Firm Now: [email protected], 844-916-0895 Compass Diversified's June 25, 2025 Admission To Accounting Irregularities: After hours on June 25, 2025, Compass Diversified filed a Form 8-K with the SEC expanding on the company's initial (May 7, 2025) warning that, due to irregularities at its Lugano Holding subsidiary, investors should no longer rely on its full-year and interim financial statements for the year ended December 31, 2024. The June 25 filing discloses that, in addition to the 2024 false financial statements, 'the identified irregularities also existed during fiscal years 2022 and 2023' and investors should no longer rely on those annual and quarterly financial statements. Compass Diversified (CODI) Securities Class Actions: The company's May 7, 2025 disclosure of 2024 accounting irregularities ignited several securities class action lawsuits alleging that Compass Diversified made false and misleading statements while failing to disclose critical information to investors, including: On May 7, 2025, investors began to learn the truth, when Compass Diversified revealed that it 'preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices.' Following discussions with senior leadership and investigators, the Audit Committee of CODI's Board concluded that 'previously issued financial statements for 2024 require restatement and should no longer be relied upon.' The company also announced its intention to delay the filing of its first-quarter 2025 Form 10-Q. The market's immediate response was severe, with the price of Compass Diversified's stock plummeting by more than 62% on the news. Hagens Berman's Investigation Hagens Berman, a national investor rights law firm, has announced it is conducting its own investigation into potential securities violations by Compass Diversified. 'The cascade of events, from the restatement of financials to the drastic measures to conserve cash, suggests a deeply entrenched issue at Lugano that Compass Diversified seemingly failed to adequately oversee,' said Reed Kathrein, the partner at Hagens Berman leading the firm's probe. If you invested in Compass Diversified and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the Compass Diversified case and our investigation, read more» Whistleblowers: Persons with non-public information regarding Compass Diversified should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895
