Compass Diversified (CODI) Stock Drop Lawsuit Investigation (2025) 

We are investigating whether Compass Diversified (NYSE: CODI) misled or provided false statements to investors in violation of federal securities laws. This potential lawsuit seeks to help Compass Diversified shareholders recover their losses. 

After the market closed on May 7, 2025, Compass Diversified disclosed that its financial statements for fiscal year 2024 should no longer be relied upon due to an ongoing internal investigation into the Company’s subsidiary, Lugano Holding, Inc. The ongoing investigation “preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices,” leading the Audit Committee of CODI’s Board to conclude that the previously issued 2024 financial statements require restatement. The company will also delay its quarterly earnings and the filing of its 2025 Q1 Form 10-Q. 

 

Additionally, Compass Diversified revealed that Lugano’s founder and CEO, Moti Ferder, had “resigned from all of his positions at Lugano and will not receive any severance compensation.” 

 

Following this news, shares of Compass Diversified dropped over 59% in intraday trading on May 8, 2025, causing harm to investors. 

Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.

 

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They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”

 

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Gibbs Mura Law Group's financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients' behalf.

We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world's largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and financial fraud lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.