Camping World drops after celebrity CEO accused of insider trading
Shares of Camping World (CWH) have moved lower in afternoon trading after Marcus Lemonis, the company's Chairman and CEO and the host of CNBC's "The Profit," was named in a shareholder lawsuit in Delaware claiming that he and associate Stephen Adams manipulated the market while taking the company public. Lemonis and Adams are accused of having used a series of public offerings to cash out of Camping World without giving up control, despite the charge that Camping World was "in no way ready to be a public company," a police pension fund stated in a complaint unsealed April 17 in Delaware Chancery Court. The lawsuit also accuses Lemonis and Adams of a "disastrous" merger that dragged down earnings and caused overhead to "balloon out of control," according to Bloomberg's account of the court filing. When news broke about the company's "inadequate controls and true financial health," the stock suffered a market capitalization loss of $1B, but Lemonis and Adams "did not fare nearly as poorly," according to Bloomberg's report of the complaint. The two men, along with partner Crestview Advisors, made more than $530M selling Camping World shares that they knew were artificially inflated in value, alleged the complaint, which Bloomberg notes is the second such complaint filed in Delaware making similar claims. In afternoon trading, Camping World shares are down 53c or 3.5%, to $14.44.