The Law Offices of Frank R. Cruz announces an investigation of Compass Diversified (“Compass” or the “Company”) (NYSE: CODI) on behalf of investors concerning the Company’s possible violations of federal securities laws.

What Is The Investigation About?
On May 7, 2025, after the market closed, Compass 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’ stock price fell as much as 64% during intraday trading on May 8, 2025, thereby injuring investors.