NEW YORK, N.Y. — Pomerantz LLP is investigating claims on behalf of investors of Camping World Holdings Inc.. Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or (888) 476-6529, ext. 9980.
The investigation concerns whether Camping World and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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 this news, between February 26, 2018, and March 2, 2018, Camping World’s stock price fell $4.63 per share or more than 10 percent.
Then, on March 13, 2018, Camping World belatedly filed its 2017 annual financial report on Form 10-K with the U.S. Securities and Exchange Commission (SEC). In the 2017 10-K, Camping World stated that its “previously issued consolidated financial statements as of and for the year ended December 31, 2016, and as of and for the three months ended March 31, 2017, three and six months ended June 30, 2017, and three and nine months ended September 30, 2017 . . . should no longer be relied upon.”
Camping World also disclosed that it had identified certain material weaknesses in its internal controls over financial reporting. As a result, Camping World stated that its disclosure controls and procedures were not effective as of December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017 and December 31, 2017, and that its internal controls over financial reporting were not effective as of December 31, 2017. On May 22, 2018, Camping World disclosed that the company had replaced Ernst & Young LLP, its auditor of 13 years. On this news, Camping World’s stock price fell $2.14 per share, or 10 percent, to close at $19.27 per share on May 23, 2018.
Then, on August 7, 2018, Camping World reported disappointing financial results for the quarter ended June 30, 2018. The Company revealed that it had achieved adjusted EBITDA of only $140.2 million for the quarter, 9 percent below its guidance of $154 million. Discussing the results on a conference call, the Company’s Chairman and Chief Executive Officer Marcus Lemonis revealed that Camping World was on track to achieve 2018 adjusted EBITDA of only $370 million to $380 million, a decline of 14 percent from prior guidance. On this news, Camping World’s stock price fell $3.17 per share, or 14%, to close at $19.04 per share on August 8, 2018.
SOURCE: Pomerantz LLP press release