Robbins Geller Rudman & Dowd LLP has announced that a class action has been commenced on behalf of purchasers of Camping World Holdings Class A common stock during the period between March 8, 2017 and Aug. 7, 2018. This action was filed in the Northern District of Illinois and is captioned Ronge v. Camping World Holdings, Inc., et al., No. 18-cv-7030.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Camping World Class A common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff, the law firm stated.
The complaint charges Camping World, certain of its officers and directors and controlling shareholders with violations of the Securities Exchange Act of 1934. In October 2016, Camping World went public in a $261 million initial public offering. In the months that followed, Camping World engaged in a number of strategic acquisitions. Most significantly, in May 2017, Camping World announced that it would be expanding its operations to include retail stores for outdoor sporting supplies and accessories by acquiring certain assets of Gander Mountain Co. from bankruptcy.
The complaint alleges that during the class period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Camping World’s business, operations and financial condition. Specifically, the complaint alleges defendants failed to disclose, among other things, that the company’s disclosure controls and controls over financial reporting suffered from a host of material weaknesses; that the company’s historical financial results had been materially misstated; that the Gander stores had encountered integration setbacks, adversely impacting the company’s earnings growth and profit margins; and that the company’s core RV business was experiencing decelerating growth as the company lagged industry trends and was losing market share to competitors.
As a result of this information being withheld from the market, the price of Camping World Class A common stock was artificially inflated to a high of $47.19 per share during the Class Period.
On February 27, 2018, the Company issued a release revealing that the company had “recently identified material weaknesses in [its] internal control over financial reporting.” The release also revealed that Camping World would need to revise prior reporting periods due to various “errors.”
Those interested can view a copy of the complaint here.
