Camping World Holdings, Inc. (NYSE: CWH) Investor Securities Class Action Lawsuit 10/19/2018

If you purchased a significant amount of shares of Camping World Holdings, Inc. (NYSE: CWH) betweenMarch 8, 2017 and August 7, 2018, and / or if you purchased any NYSE: CWH shares prior to March 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: December 18, 2018. NYSE: CWH investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Camping World Holdings
Case Name: 
Camping World Holdings Shareholder Class Action Lawsuit 10/19/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: CWH
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/19/2018
Class Period Begin: 
03/08/2017
Class Period End: 
08/07/2018
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
12/18/2018
Summary: 

An investor in shares of Camping World Holdings, Inc. (NYSE: CWH) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Camping World Holdings, Inc. in connection with certain allegedly false and misleading statements made between March 8, 2017 and August 7, 2018.

Lincolnshire, IL based Camping World Holdings, Inc., through its subsidiaries, provides a portfolio of services, protection plans, products, and resources for recreational vehicle (RV) owners and camping enthusiasts.

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.”

According to the plaintiff the release also revealed that Camping World would need to revise prior reporting periods due to various “errors” and that the cumulative impact of these misstatements required the Company to restate and reduce its 2016 basic earnings per share from $0.11 per share to $0.08 per share, as the prior reported basic earnings per share had been overstated by more than 37%.

On March 1, 2018, post-market, Camping World Holdings, Inc., announced it is delaying its Annual Report on Form 10-K for the year ended December 31, 2017. Camping World Holdings, Inc., disclosed it "expects to report 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."

On May 8, 2018, Camping World Holdings, Inc reported its financial results for the quarter ended March 31, 2018, including a decrease in adjusted EBITDA and adjusted EBITDA margin. In addition, the Company revealed adverse trends in its core RV business indicating that it had lost significant market share to its competitors. On this news, the price of Camping World Class A stock fell 17%.

Then, on August 7, 2018, Camping World Holdings, Inc reported its financial results for the quarter ended June 30, 2018, including adjusted EBITDA of only $140.2 million for the quarter, 9% below its previous guidance. In addition, Camping World revealed that its adjusted EBITDA margin had continued to deteriorate and had fallen 250 basis points year-over-year, while its same-store revenues had experienced a “modest decline,” again underperforming the broader market. In addition, the Company revealed that problems in its Gander operations were more extensive than previously disclosed.

Shares of Camping World Holdings, Inc. (NYSE: CWH) declined from as high as $47.09 per share in early 2018 to as low as $19.01 per share in August 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Camping World Holdings, Inc. (NYSE: CWH) common shares between March 8, 2017 and August 7, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between March 8, 2017 and August 7, 2018, the 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, and that 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 between March 8, 2017 and August 7, 2018.