CNBC host Marcus Lemonis, aka ‘The Profit’, has been hit with a shareholder lawsuit in Delaware claiming that he and a well-known private-equity investor manipulated the market while taking an RV supply company public.
In a complaint unsealed yesterday, Bloomberg reports that the plaintiff – the Lincolnshire Police Pension fund – alleges Lemonis and Stephen Adams used a series of public offerings to cash out of Camping World Holdings Inc. without relinquishing their control of it, even though Camping World was “in no way ready to be a public company.”
Lemonis and Adams also pursued a disastrous plan to buy out a competitor, according to the lawsuit, which was filed under seal April 12 in Delaware Chancery Court. The merger weighed down Camping World’s earnings and caused its overhead to “balloon out of control,” the suit says.
When news broke about the company’s “inadequate controls and true financial health,” its share price crashed 60 percent from $47.19 to $18.83, a market capitalization loss of $1 billion, according to the complaint.
But Lemonis and Adams “did not fare nearly as poorly,” the suit says.
Other top executives also made millions using nonpublic information about Camping World’s “true business health,” the suit says, naming them as additional defendants.
And Camping World shares are tumbling…
Maybe he should rename his show “The Loss”.
via ZeroHedge News http://bit.ly/2IGsjkX Tyler Durden