According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that:
- Compass’ subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable;
- the irregularities and undisclosed details in Lugano Holdings, Inc.’s financial statements rendered the financial statements of Compass as a whole unreliable, and would require restatement;
- Compass Diversified failed to maintain adequate internal controls related to its financial statements; and
- as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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