Camping World Holdings Inc. Chairman and CEO Marcus Lemonis was named in a shareholder lawsuit claiming that he and an associate had manipulated the market while taking the RV retailer public.
Lemonis, a private-equity veteran who’s perhaps best known as the host of CNBC’s The Profit, is the target of a lawsuit unsealed April 17 in Delaware Chancery Court, according to a Bloomberg report.
The suit, which was filed by the Lincolnshire (Ill.) Police Pension fund, alleges that Lemonis and associates used a series of public offerings to cash out of Camping World without relinquishing control and despite knowing that Camping World was “in no way ready to be a public company.”
The lawsuit alleges Lemonis and his associates made more than $530 million selling shares that they knew were artificially inflated in value. The suit says that last year, as news came out about what the lawsuit calls Camping World’s “inadequate controls and true financial health,” the shares lost about 60% of their value.
This is at least the second investor lawsuit filed against Camping World. Last October, an investor filed in Illinois federal court seeking class action status, accusing Lemonis and other company officials of misstating Camping World’s financial health while selling down their stakes.
Camping World went public in October 2016 but is still controlled by Lemonis and private equity firm Crestview Partners.
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