Compass Diversified Holdings overstated its financials and internal controls before revealing it needed to restate 2024 results while it probes its luxury jewelry subsidiary’s accounting, said an investor’s proposed class action filed Friday.
Share prices slid 8% after hours May 7 and continued to plunge Thursday after the holding company said subsidiary Lugano Holdings Inc.'s CEO resigned, per the complaint filed in the US District Court for the Central District of California.
Share prices dropped 62% to close at $6.55 Thursday—the stock’s steepest single day slide on record, according to Bloomberg data.
Ahead of the May 7 announcement, Compass issued ...
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