COMPASS DIVERSIFIED SHAREHOLDER ALERT BY FORMER LOUISIANA ATTORNEY GENERAL: KAHN SWICK & FOTI, LLC REMINDS INVESTORS WITH LOSSES IN EXCESS OF $100,000 of Lead Plaintiff Deadline in Class Action Lawsui

Kahn Swick & Foti, LLC is reminding investors who purchased Compass Diversified Holdings (CODI) securities between May 1, 2024, and May 7, 2025, of the July 8, 2025 deadline to file lead plaintiff applications in a securities class action lawsuit. The lawsuit follows Compass's May 7, 2025, announcement that it would restate its 2024 financial statements due to an internal investigation into its Lugano Holding, Inc. subsidiary, which revealed irregularities in Lugano's financing, accounting, and inventory practices, leading to a 62% drop in Compass's share price.

Analysis

Compass Diversified Holdings (CODI) is currently embroiled in a securities class action lawsuit, for which investors have until July 8, 2025, to file lead plaintiff applications if they purchased securities between May 1, 2024, and May 7, 2025. The lawsuit stems from CODI's May 7, 2025, announcement that its previously issued financial statements for fiscal year 2024 require restatement and should no longer be relied upon. This drastic measure was prompted by an ongoing internal investigation by CODI's Audit Committee into its subsidiary, Lugano Holding, Inc., which has preliminarily identified irregularities concerning Lugano's non-CODI financing, accounting, and inventory practices. The severity of the situation is further highlighted by the resignation of Lugano's founder and CEO, Moti Ferder, effective May 7, 2025, without severance compensation. The market's reaction to these disclosures was severe, with CODI's share price plummeting approximately 62%, from $17.25 per share on May 7, 2025, to $6.55 per share on May 8, 2025. The lawsuit alleges that CODI and certain executives violated federal securities laws by failing to disclose material adverse information, significantly impacting investor confidence and raising serious questions about the company's internal controls and oversight of its subsidiaries.

Key Decisions for Investors

• Investors who acquired Compass Diversified Holdings securities during the Class Period (May 1, 2024, to May 7, 2025) should assess their legal rights concerning the pending class action lawsuit, particularly the July 8, 2025 deadline for lead plaintiff applications, to potentially recover economic losses.
• Given the significant uncertainties surrounding the internal investigation at Lugano Holding, the impending financial restatement, and the substantial drop in share price, current and prospective investors should approach CODI with extreme caution, recognizing heightened risks related to governance and financial reporting integrity.
• Investors should closely monitor all subsequent disclosures from CODI regarding the full findings of the internal investigation, the specifics and impact of the financial restatement, and any corrective measures implemented by management before making any investment decisions.