Compass Diversified Holdings leadership overstated its financials and internal controls before saying it needed to restate 2024 fiscal results while probing its luxury jewelry subsidiary, a shareholder lawsuit said.
Share prices dropped 62% the day after Compass said it would have to delay filing a federal report as it probed Lugano Holdings Inc.'s financing, accounting, and inventory practices, according to the complaint filed in the US District Court for the Central District of California. It was the stock’s steepest single day slide since its 2006 market debut, according to data compiled by Bloomberg.
The company, which works to acquire and ...
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