Updated: August 5, 2020
On March 12, 2020, Labaton Sucharow filed papers seeking preliminary approval of a $12.5 million settlement obtained on behalf of co-lead plaintiff City of Omaha Police & Fire Retirement System and a class of investors in Camping World Holdings, Inc. The settlement resolves a securities class action lawsuit against Camping World, its Chairman and CEO Marcus Lemonis, and related persons and entities.
Historically, Camping World specialized in selling recreational vehicles (“RVs”) and related services such as travel assist programs, emergency roadside assistance, property and casualty insurance programs, extended vehicle service contracts, and vehicle financing and refinancing. In October 2016, defendants took Camping World public in a $261 million initial public offering. In the months that followed the IPO, defendants repeatedly emphasized the company’s earnings growth and profit potential as Camping World engaged in a number of strategic acquisitions. Most significantly, in May 2017, Camping World announced that it would be expanding its operations to include retail stores for outdoor sporting supplies and accessories by acquiring certain assets of Gander Mountain Co. (“Gander”) from bankruptcy.
Plaintiffs alleged that Defendants made materially false and misleading statements during the Class Period regarding Camping World’s financial performance, including its historical financial results and its integration and operation of the newly acquired Gander stores. In addition, Plaintiffs alleged that Defendants fraudulently concealed material weaknesses in the Camping World’s disclosure controls and internal controls over financial reporting, which contributed to the artificial inflation of the company’s reported 2016 basic earnings per share (“EPS”) by over 37%.
The initial complaint was filed on October 19, 2018, and on January 17, 2019, the Court appointed City of Pontiac General Employees’ Retirement System, Oklahoma Police Pension & Retirement System, and City of Omaha Police & Fire Retirement System as Lead Plaintiffs and the firms of Robbins Geller Rudman & Dowd LLP and Labaton Sucharow LLP as Lead Counsel. On February 27, 2019, Plaintiffs filed the Consolidated Complaint for Violations of the Federal Securities Laws. On March 12, 2020, Plaintiffs filed the Amended Complaint.
On May 17, 2019, Defendants filed their Motions to Dismiss the Action, alleging that Plaintiffs’ Complaint failed to state a claim for relief. Plaintiffs filed their opposition on July 16, 2019, and Defendants filed their replies on August 15, 2019. At the time the Settling Parties reached an agreement to settle the Action, Defendants’ Motions to Dismiss were pending before the Court.On August 5, 2020, the Court approved the Settlement, Plan of Allocation, and request for attorneys’ fees and expenses.
The case is Ronge v. Camping World Holdings, Inc., No. 18-cv-7030 (N.D. Ill.).
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If you purchased or otherwise acquired Camping World publicly traded Class A common stock during the period from October 6, 2016, through August 7, 2018 inclusive, including those who purchased or acquired shares of Camping World publicly traded Class A common stock in the Company’s initial public offering, which occurred on or around October 6, 2016, and/or in the Company’s secondary offerings, which occurred on or around May 26, 2017 and October 27, 2017, you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by July 30, 2020.