Compass Diversified Stock Plunges 58% After Announcement Of Financial Restatement

(RTTNews) - Compass Diversified (CODI) shares are down 57.89 percent to $7.26, falling $9.99 during Thursday's trading, after the company disclosed yesterday that it will restate its fiscal 2024 financial statements and delay its first quarter 2025 10-Q filing due to an internal investigation into its subsidiary, Lugano Holding, Inc.

The stock opened at $8.50 and has ranged between $6.05 and $8.84 during the session on the New York Stock Exchange. It closed previously at $17.25. Volume has surged to 8.18 million shares, significantly above the daily average of 319,570.

Compass Diversified has traded between $6.05 and $24.59 over the past 52 weeks.

The Audit Committee found preliminary irregularities related to Lugano's inventory financing and accounting practices, rendering the prior financials unreliable.