WILIMINGTON, Del. (Legal Newsline) – A Camping World shareholder has filed a lawsuit against the national retailer and its top executives claiming they made false and misleading statements about the company in order to inflate the company's stock prices and profit from their stock sales.
According to the Aug. 6 filing in the U.S. District Court for the District of Delaware, David Janssen, derivatively on behalf of nominal defendant Camping World Holdings Inc., filed a suit against Camping World Holdings Inc. and certain members of the company's officers and board of directors alleging U.S. Securities and Exchange violations and other counts.
The suit states that the defendants took Camping World public in March 2017 so that they could sell their "massive" holdings. The plaintiff alleges that the defendants made false statements regarding Camping World's finances, success and profits and its acquisition of Gander Mountain stores all in an effort to inflate Camping World's stock price. According to the suit, after the real company information was revealed, Camping World's stock price crashed, causing the plaintiff and other investors to lose millions.
The plaintiff seeks damages and the reforming of Camping World's governance and internal procedures and the amending of the company's bylaws to allow for more supervision and input by shareholders. The plaintiff also seeks disgorgement of the defendants' profits and compensation gained through their alleged actions.
Attorneys for the plaintiff are Ryan Ernst of O'Kelly Ernst & Joyce LLC in Wilmington, Delaware, and Joshua Lifshitz of Lifshitz & Miller LLP in Garden City, New York.
U.S. District Court for the District of Delaware case number 1:19-cv-01467