Top photo credit: PeRshGo
The Illinois-based retailer misled investors and failed to disclose problems resulting from its Gander Mountain acquisition in 2017, the lawsuit alleges.
In the wake of Camping World’s flagging earnings, anyone who purchased the company’s Class A common stock between March 8, 2017, and August 7, 2018, may be entitled to recover financial damages.
In a class-action lawsuit filed this week on behalf of plaintiffs, RM Law accused Camping World Inc. of misleading investors. Specifically, according to the lawsuit, Camping World “suffered material weaknesses” in its financial reporting and “misstated” financial results. And perhaps most striking, the suit alleges the company failed to disclose “integration setbacks” after acquiring Gander Mountain. It claims the acquisition adversely impacted profit and growth.
The lawsuit claims Camping World violated the Securities and Exchange Act of 1934. The act cracks down on corporate fraud by mandating greater financial transparency.
Camping World Class-Action Lawsuit
In layperson terms, the plaintiffs accused Camping World of obscuring its performance and hiding internal woes to appease investors. This resulted in financial losses following the company’s disappointing first and second quarter financial results in 2018.
Here’s the legalese, released from RM Law:
“The complaint alleges that defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors: (i) that the Company’s disclosure controls and controls over financial reporting suffered from a host of material weaknesses; (ii) that the Company’s historical financial results had been materially misstated; (iii) that the Company’s Gander Mountain Co. (“Gander”) stores had encountered integration setbacks, adversely impacting the Company’s earnings growth and profit margins; and (iv) that the Company’s core RV business was experiencing decelerating growth as the Company lagged industry trends and was losing market share to competitors. The complaint further alleges that, as a result of the foregoing, investors purchased Camping World’s Class A common stock at artificially inflated prices as high as $47.19 per share during the Class Period, and suffered significant investment losses as a result of defendants’ alleged misconduct.”
The complaint cites that Camping World’s common stock fell nearly 17 percent, $4.60 per share, in the first quarter of 2018. Then the stock continued to tumble, dropping another $3.17 per share to close at $19.04 in August. And, the plaintiffs argue, Camping World “artificially inflated” common stock prices to nearly $50 per share during the period between May 2017 and August 2018.
In May 2017, Camping World won St. Paul-based Gander Mountain Inc. at a bankruptcy auction. The company shuttered many of Gander’s 162 locations but rebranded 69 stores as Gander Outdoors.
Anyone who believes they may be entitled to damages has until December 18, 2018, to join this lawsuit. Learn more here.