COMPASS DIVERSIFIED CLASS ACTION LAWSUIT
TIMOTHY L. MILES
(855) TIM-M-LAW (855-846-659)
(24/7/365)
A class action lawsuit has been filed seeking to represent purchasers or acquirers of Compass Diversified Holdings (NYSE: CODI) publicly traded securities between May 1, 2024 and May 7, 2025, inclusive (the “Class Period”). Captioned Augenbaum v. Compass Diversified Holdings, No. 25-cv-01003 (C.D. Cal.), the Compass Diversified class action lawsuit charges Compass Diversified Holdings, Compass Group Diversified Holdings LLC, Compass Group Management LLC, and certain of Compass Diversified’s top current and former executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Compass Diversified class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected].
Lead plaintiff motions for the Compass Diversified class action lawsuit must be filed with the court no later than July 8, 2025.
The Compass Diversified lawsuit is a securities class action lawsuit that centers on allegations of misleading investors through the provision of inaccurate or incomplete information regarding the company’s financial status and operations. Such allegations, if proven true, could result in significant legal and financial consequences for Compass Diversified. You need to grasp the magnitude of these claims and their potential impact on the company’s future.
Understanding the lawsuit requires analyzing the details of the allegations. Investors claim that Compass Diversified’s disclosures were not as transparent as they should have been, leading to financial losses once the truth was revealed. Legal experts are examining whether there was a deliberate attempt to mislead stakeholders, which could lead to punitive measures.
For anyone involved in investing, this lawsuit serves as a stark reminder of the importance of due diligence and the risks associated with corporate investments. As you navigate through the nuances of this case, consider how transparency and accountability play pivotal roles in maintaining investor trust and confidence in the market.
On September 7, 2021, Compass Diversified announced the acquisition of a majority interest in Lugano Holdings, Inc., a designer, manufacturer, and marketer of high-end jewelry, in a deal with an enterprise value of $256 million (excluding working capital and certain other adjustments upon closing).
The Compass Diversified class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
On May 7, 2025 Compass Diversified issued a 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.” revealing that Compass Diversified “has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.”
Compass Diversified’s release also announced that Compass Diversified intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of Compass Diversified’s stock fell more than 62%.
Under the Private Securities Litigation Reform Act of 1995 (PSLRA):
Lead plaintiff motions for the Compass Diversified class action lawsuit must be filed with the court no later than July 8, 2025.. When a securities class action is filed:
To be eligible for appointment as the lead plaintiff in the Compass Diversified Class Action Lawsuit, an investor must meet the following criteria:
It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.
The Compass Diversified Class Action Lawsuit primarily affects investors who purchased shares and suffered a loss during the period in which the alleged misconduct occurred. If you invested in Compass Diversified during this time, you could be part of the affected class and eligible for compensation if the lawsuit succeeds.
Identifying whether you are part of the affected group is crucial for understanding your rights and potential benefits. The Compass Diversified Lawsuit may involve a specific time frame and set of circumstances that define the class of investors who can participate. Knowing these details will help you determine your eligibility and take appropriate action.
In addition to investors, the lawsuit can also impact the company’s executives, board members, and other stakeholders. The outcome of the lawsuit could influence Compass Diversified’s reputation, financial stability, and future operations, affecting all parties associated with the company. Staying informed about the lawsuit’s progress is essential for anyone connected to Compass Diversified.
Investors who believe they have been adversely affected by Compass Diversified’s actions should consider the following steps:
By taking proactive steps, investors can better navigate the complexities of the Compass Diversified Class Action Lawsuit and protect their interests in this evolving legal landscape.
What initiated the Compass Diversified class action lawsuit?
The lawsuit was initiated by investors alleging that Doubleverify provided misleading information regarding its financial health and operations, resulting in financial losses.
How can I join the Compass Diversified lawsuit?
If you purchased shares during the class period and suffered a loss, then you are automatically a member of the class and do not need to do anything at this point unless you are considering moving for lead plaintiff.
What are the potential benefits of a class action lawsuit?
Class action lawsuits allow individual investors to collectively seek justice and compensation, which might be challenging to pursue individually. They also promote corporate accountability.
How long will the lawsuit take to resolve?
The duration of class action lawsuits can vary significantly, depending on the complexity of the case, legal strategies, and whether settlements are reached. It could take several months to years.
If you suffered losses in Compass Diversified stock, call us today for a free case evaluation about an Compass Diversified Class Action Lawsuit. 855-846-6529 or [email protected] (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: [email protected]
Website: www.classactionlawyertn.com
COMPASS DIVERSIFIED CLASS ACTION LAWSUIT
TIMOTHY L. MILES
(855) TIM-M-LAW (855-846-659)
(24/7/365)