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NEW YORK — Scott+Scott Attorneys at Law announced it is investigating whether certain directors and officers of Camping World Holdings breached their fiduciary duties to the company and its shareholders.
In December, a number of law firms had already filed suit against Camping World regarding irregularities in the company’s financial reporting.
Today, Scott+Scott is investigating whether members of Camping World’s board of directors made or allowed Camping World to make false and/or misleading statements and/or failed to disclose that:
- The company’s disclosure controls and controls over financial reporting suffered from a host of material weaknesses.
- The company’s historical financial results had been materially misstated.
- The company’s Gander Mountain stores had encountered integration setbacks, adversely impacting Camping World’s earnings growth and profit margins
- The company’s core RV business was experiencing decelerating growth, as Camping World lagged industry trends and was losing market share to competitors a result.
- The company’s public statements were materially false and misleading at all relevant times.
Further, the law firm alleges Camping World insiders may have caused the company’s stock to become inflated, so that they could sell more than $530 million worth of shares.
On March 1, 2018, Camping World announced that it would be unable to timely file its 2017 Form 10-K due to expected “material weaknesses in its internal control over financial reporting relating to the insufficient documentation of certain accounting policies and procedures within the company’s retail segment, and ineffective transactional level and management review controls over the valuation of used trade-in inventory.”
Following that disclosure, Camping World’s stock price fell $4.63 per share, or more than 10%, between Feb. 26 and March 2, 2018.
On March 13, 2018, Camping World announced that it would have to restate its financial statements for 2016 and the first three quarters of 2017 and had identified material weaknesses in its internal controls over financial reporting.
On May 8, 2018, Camping World admitted that the integration of the Gander stores had suffered severe operational setbacks and were not as profitable as initially reported, with the company’s CEO, Marcus Lemonis, describing the botched rollout of the Gander stores as a “giant sh*t show,” the law firm noted.
Finally, on Aug. 7, 2018, the company revealed that problems with the Gander operations were even more extensive than previously disclosed, announcing a 14% decline from prior guidance and that the Gander operations were responsible for the $60 million reduction in adjusted EBITDA for the year.
The full press release is available at www.apnews.com.