Investigation into securities fraud involving Compass Diversified (CODI) in the Northeast.

On May 7, 2025, Compass Diversified, a publicly traded company listed on the New York Stock Exchange under the ticker symbol CODI, made a significant announcement. The company stated that its financial statements for the fiscal year 2024 should not be relied upon due to ongoing internal investigations related to its subsidiary, Lugano Holding, Inc. The investigation uncovered irregularities in Lugano’s financing, accounting, and inventory practices. As a result of these findings, Moti Ferder, the founder and CEO of Lugano, resigned from all his positions without receiving any severance compensation.

Following this revelation, investors saw a substantial impact on Compass Diversified’s stock price. Intraday trading on May 8, 2025, saw the company’s stock plummet by as much as 64%, causing significant financial losses to shareholders. This sudden and drastic drop in value raised concerns among investors regarding potential securities law violations by Compass Diversified.

In light of these developments, the Law Offices of Frank R. Cruz initiated an investigation into Compass Diversified on behalf of investors who may have suffered financial losses as a result of the company’s actions. The investigation aims to uncover any potential violations of federal securities laws by Compass and its executives. Investors who have information or have questions about these matters are encouraged to reach out to the Law Offices of Frank R. Cruz.

If you are an investor who purchased Compass Diversified securities and would like to learn more about your rights in this situation, you can contact the Law Offices of Frank R. Cruz at their Century City office in Los Angeles. By providing details about your investment, including the number of shares purchased, investors can inquire about potentially pursuing a claim to recover any losses incurred due to Compass Diversified’s actions.

This press release serves as a notice to investors affected by the sudden decline in Compass Diversified’s stock value following the disclosure of irregularities within the company’s operations. As the investigation unfolds, shareholders are urged to stay informed about any developments that may impact their investments.

For additional information or to participate in the investigation, interested parties can contact the Law Offices of Frank R. Cruz via phone, email, or by visiting their website. By taking proactive steps to address concerns related to Compass Diversified’s conduct, investors can protect their rights and seek potential remedies for any financial harm suffered.