Compass Diversified Holdings, a statutory trust based in Westport, Connecticut, has announced significant accounting irregularities within its subsidiary, Lugano Holdings, Inc. The company disclosed that its 2024 financial statements should not be relied upon due to ongoing investigations revealing unrecorded financing arrangements, sales and inventory irregularities, and unreliable financial statements. This announcement has prompted the resignation of Lugano's founder and CEO, Mordechai Ferder, who will not receive severance compensation. Following the news, Compass's stock price plummeted by 62%, closing at $6.55 per share on May 8, 2025. Investors who acquired securities between May 1, 2024, and May 7, 2025, are encouraged to join the pending securities class actions, with a lead plaintiff deadline set for July 8, 2025.
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