Compass Diversified (CODI) reached a settlement with Lugano Diamonds & Jewelry and its creditors to resolve all claims stemming from alleged fraudulent actions by Lugano's former CEO. CODI will support Lugano's Plan of Liquidation in exchange for a portion of net proceeds from asset sales, including 34.79% of inventory, tax refunds, and insurance proceeds. The company is entitled to 45% of net proceeds from specific liquidation trust litigation and 25% from other litigation claims. The agreement provides mutual releases for CODI and its related parties from claims by the Lugano estate. The settlement is contingent upon the bankruptcy court's confirmation of the Plan of Liquidation.