Compass Diversified Holdings Securities Lawsuit Investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in securities fraud cases, is investigating potential claims against Compass Diversified Holdings (CODI).

If you purchased or held Compass Diversified Holdings securities between May 01, 2024 and May 07, 2025, you may be eligible to join this class action lawsuit and seek compensation for your losses.

About Compass Diversified Holdings

Compass Diversified Holdings (NYSE: CODI) is an investment company that owns controlling interests in a group of middle-market businesses. Founded in 2005, the company is structured to provide shareholders with exposure to a range of subsidiary businesses across various industries.

The company operates with a permanent capital structure, which it claims allows for financial flexibility and long-term value creation. CODI’s portfolio includes ten diverse subsidiaries, and the company regularly reports on its financial performance and governance practices. One of its notable subsidiaries is Lugano Holdings, Inc., which has become central to the current securities litigation.

Compass Diversified is headquartered in Westport, Connecticut, and, according to LinkedIn, employs around 52 people.

The Allegations

The securities class action lawsuit alleges that Compass Diversified Holdings and certain executives made materially false and misleading statements regarding the company’s financial reporting, internal controls, and disclosure practices. Specifically, the complaint points to failures to disclose unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable at its subsidiary, Lugano Holdings, Inc.

According to the complaint, these issues were not disclosed to investors during the class period, which spans from May 01, 2024 to May 07, 2025. The truth began to emerge on May 7, 2025, when Compass Diversified announced an internal investigation into Lugano Holdings, stated that previously issued financial statements for fiscal 2024 should not be relied upon, and disclosed the need for a restatement.

As a result, the company’s stock price dropped sharply—falling approximately 8% after this announcement.

The lawsuit claims that investors suffered significant losses due to these alleged misrepresentations and omissions.

Important Dates

• Class period: May 01, 2024 to May 07, 2025
• Lead plaintiff deadline: July 08, 2025
• Complaint filed: May 09, 2025

Your Rights and Next Steps

If you purchased or otherwise acquired Compass Diversified Holdings securities during the class period, you have important legal rights. Investors who suffered financial losses as a result of the alleged securities fraud may be eligible to participate in the class action lawsuit.

Here’s what you need to know:

• You do not need to have sold your shares to be eligible; simply purchasing or holding during the class period may qualify you.
• By joining the class action, you can seek to recover losses related to the alleged fraud.
• The court will appoint a lead plaintiff to represent the interests of all class members. If you wish to be considered for this role, you must apply before the lead plaintiff deadline of July 08, 2025.
• There is no cost or obligation to participate in the investigation or the lawsuit.
• Lawyers are ready to help answer your questions and guide you through the process.

You May Be Entitled to Compensation

If you invested in Compass Diversified Holdings during the class period and experienced losses, you may be entitled to compensation. To protect your rights and learn if you qualify to join the lawsuit, complete the below form.

Lawyers are ready to help you understand your options and take the next steps.