Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its Subsidiary, Lugano Holding, Inc.

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[{"type":"image","alt":"Compass Diversified Holdings","displaySize":"","headline":null,"caption":"Compass Diversified Holdings","className":"","disableSlideshowImg":false,"size":{"original":{"width":300,"height":300,"url":"https://media.zenfs.com/en/globenewswire.com/7a6b385a73fb708ecbccc8b02cc52c82"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/tCASmjjiFzdG4jLDDSwIhA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTQyMDtoPTQyMDtjZj13ZWJw/https://media.zenfs.com/en/globenewswire.com/7a6b385a73fb708ecbccc8b02cc52c82","width":300,"height":300}},"lazy":false},{"type":"text","content":"The Company Intends to Delay Quarterly Earnings and Filing of 2025 Q1 Form 10-Q","length":79,"tagName":"p"},{"type":"text","content":"WESTPORT, Conn., May 07, 2025 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI”) today disclosed non-reliance on its financial statements for fiscal 2024 amid an ongoing internal investigation into its subsidiary, Lugano Holding, Inc. It also announced that it intends to delay the filing of its first quarter 2025 Form 10-Q.","length":336,"tagName":"p"},{"type":"text","content":"The Audit Committee of CODI’s Board of Directors promptly launched an investigation after CODI’s senior leadership was made aware of concerns about how Lugano was potentially financing inventory. The investigation, led by outside counsel and a forensic accounting firm, is ongoing but has preliminarily identified irregularities in Lugano’s non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI’s Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.","length":620,"tagName":"p"},{"type":"text","content":"Effective 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. These issues are limited to Lugano, of which CODI owns approximately 60%, and the investigation is not focused on CODI’s other subsidiaries.","length":296,"tagName":"p"},{"type":"text","content":"“The company's Board of Directors continues to have confidence in CODI leadership and Compass Group Management, the company’s external manager,” said Larry Enterline, Chair of the CODI Board of Directors. “The company’s manager and its employees reacted swift...

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