CDH & Lugano Diamonds Fraud: Hurwitz Sagarin & Slossberg Files Amended Class Action Complaint on Behalf of Investors
02/10/2026Hurwitz Sagarin & Slossberg, appointed by the court as liaison counsel, filed an amended class action complaint on of Eastern Atlantic States Carpenters Benefit Funds. The lawsuit alleges that CDH's failure to conduct an adequate risk assessment and perform due diligence led them to acquire a company engaged in systematic accounting fraud - fraud that proper vetting should have uncovered.
The complaint filed on 2/6/26 details how CDH ignored or missed the mounting red flags regarding Lugano’s financial irregularities. Rather than detecting these warning signs, CDH proceeded with the acquisition and made assurances to investors about Lugano's financial performance and business health. The lawsuit alleges CDH made false statements to investors, concealed known problems, and made material misrepresentations to conceal the true state of Lugano's finances. The law firm of Cohen Milstein is serving as lead counsel in the action.