04:47 PM EDT, 05/27/2025 (MT Newswires) -- Compass Diversified ( CODI ) said late Tuesday it suspended its quarterly distribution on common shares as it investigates irregularities at its Lugano Holdings unit related to financing, accounting, and inventory practices.

The company also limited investment in Lugano, reduced management fees, and entered a forbearance agreement with its lenders to preserve liquidity.

CODI said its eight other subsidiaries continue to operate normally, and it is focused on reducing leverage and supporting long-term value.

The company also disclosed it received a notice from the NYSE regarding a delayed quarterly filing, which may affect its listing status if not resolved within six months.

Shares of Compass Diversified ( CODI ) were down 12.6% in after-hours trading.