(April 18, 2019) — Camping World and Good Sam Club CEO Marcus Lemonis has been hit with a shareholder lawsuit in Delaware claiming that he and a well-known private-equity investor manipulated the market while taking an RV supply company public.
In a complaint unsealed yesterday, Bloomberg reports that the plaintiff – the Lincolnshire Police Pension fund – alleges Lemonis and Stephen Adams used a series of public offerings to cash out of Camping World Holdings Inc. without relinquishing their control of it, even though Camping World was “in no way ready to be a public company.”
The lawsuit alleges Lemonis and his associates made more than $530 million selling shares that they knew were artificially inflated in value. The suit says that last year, as news came out about what the lawsuit calls Camping World’s “inadequate controls and true financial health,” the shares lost about 60 percent of their value.
This is at least the second investor lawsuit filed against Camping World. Last October, an investor filed in Illinois federal court seeking class action status, accusing Lemonis and other company officials of misstating Camping World’s financial health while selling down their stakes.
Camping World went public in October 2016 but is still controlled by Lemonis and private equity firm Crestview Partners.
Source: Yahoo! Finance