Camping World (CWH) told investors its inventory strategy and analytics were driving stronger performance. Smart inventory. Strong performance. A balance sheet that executives described as very healthy. According to the complaint, however, those statements did not fully reflect the company’s underlying inventory and demand-related problems.
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Investors who purchased Camping World Holdings stock during a period of optimistic management commentary are now scrutinizing whether the company’s public statements about inventory control and financial performance accurately reflected on-the-ground conditions.
A federal securities lawsuit filed in the Northern District of Illinois alleges that Camping World Holdings, Inc. (NYSE: CWH) misled investors about its inventory management capabilities, consumer demand outlook, and financial trajectory during a class period running from April 29, 2025, through February 24, 2026. The complaint alleges two significant stock declines tied to the emergence of negative disclosures: a drop of approximately 24.8%, or $4.17 per share, on October 29, 2025, and a further decline of approximately 16.5%, or $1.79 per share, on February 25, 2026. Both drops are alleged to have followed quarterly earnings releases that revealed deteriorating financial results and operational challenges, which the complaint contends were not adequately disclosed during the class period.
Investors who purchased Camping World securities between April 29, 2025, and February 24, 2026, may wish to learn more about their legal rights and potential eligibility to participate in this litigation.
Camping World Holdings: A Look at the Business
Camping World Holdings is incorporated in Delaware with its principal executive offices in Lincolnshire, Illinois. The company retails recreational vehicles and a range of related products and services in the United States, with its common stock trading on the New York Stock Exchange under the ticker symbol CWH.
The complaint names three individual defendants alongside the company: Marcus A. Lemonis, who served as CEO from 2006 through December 31, 2025; Matthew D. Wagner, who assumed the CEO role on January 1, 2026, and who previously served as President during the class period; and Thomas E. Kirn, the company’s Chief Financial Officer. According to the complaint, these individuals possessed authority over the company’s public disclosures to the SEC, press releases, and presentations made to analysts and institutional investors.
What the Lawsuit Alleges About Inventory and Financial Reporting
The lawsuit centers on the allegation that Camping World publicly overstated its ability to manage inventory through data-driven methods while concealing that its actual systems and processes were inadequate to support the guidance and disclosures it was making. The complaint asserts that management repeatedly characterized its inventory strategy as disciplined and scientifically grounded, even as conditions allegedly warranted materially different disclosures.
The overarching theme of the case, as framed in the complaint, is that investors were led to believe the company had an analytically driven approach to matching inventory with consumer demand, while the complaint alleges the company later needed “strict, corrective inventory management objectives” that negatively affected gross profit and margins. The complaint further alleges that the company overstated consumer retail demand and that inadequate internal systems prevented the company from providing accurate guidance on balance sheet health and SG&A expense reduction.
If you are following this case or want to understand how it may develop, monitoring the company’s ongoing court filings and disclosures can help you stay informed.
What Management Said During the Class Period
During the class period, company executives made a series of public statements that the complaint contends were materially false or misleading. On the first-quarter 2025 earnings call held on April 30, 2025, CEO Marcus Lemonis emphasized “proper inventory planning, proper stocking” and described the company’s balance sheet as “very healthy,” citing cash, free-and-clear inventory, parts, real estate, and available revolving credit facilities.
On July 29, 2025, a press release attributed to Lemonis stated the company was “surgically managing” inventory using “sophisticated data analytics, and the strength of our balance sheet to put the right inventory on the ground at the right time and the right price.” During the subsequent earnings call on July 30, 2025, Lemonis stated that the company’s “balance sheet, quite frankly, has never been stronger,” and President Wagner characterized the company as having “played a much more competitive and intelligent game in terms of our inventory management.” The company had also updated its full-year guidance at that time, projecting that SG&A as a percentage of gross profit would improve by 300 to 400 basis points for 2025.
How Investors Allegedly Learned the Truth
The complaint identifies two corrective disclosures through which the alleged truth was revealed to the market. The first occurred on October 28, 2025, after the market closed, when the company released its third quarter 2025 financial results. Those results included a 7.0% decrease in new vehicle revenue, an 8.6% decline in average selling price for new vehicles, and a new vehicle gross margin of 12.7%, representing a decrease of 81 basis points. Total gross margin came in at 28.6%, a decrease of 27 basis points. The company also disclosed that it viewed 2026 as a “consecutive year of Adjusted EBITDA growth, starting in the low $300 million range.” On the associated earnings call, Lemonis acknowledged that the company may have entered certain years with “a little bit of a delusion about what was happening” and admitted to having been “a little bit more aggressive in pushing them to liquidate out of inventory.” On October 29, 2025, the company’s stock fell $4.17, or 24.8%, to close at $12.65 per share on unusually heavy trading volume.
The second and more complete disclosure, as alleged in the complaint, came on February 24, 2026, after the market closed. The company’s fourth quarter 2025 results revealed that it had “implemented strict, corrective inventory management objectives to structurally improve turnover rates,” creating gross margin headwinds expected to continue into 2026. The company reported a net loss of $109.1 million for the quarter, an 83.3% increase, and an adjusted EBITDA loss of $26.2 million. New vehicle gross margin declined 291 basis points to 12.3%, and used vehicle gross margin fell 277 basis points to 16.0%, with the used vehicle decline attributed in part to accelerated sales of aged inventory in December. SG&A as a percentage of gross profit came in at 85%, reflecting only a 190-basis-point improvement, rather than the previously guided 300 to 400 basis points. The company also announced an immediate pause to its quarterly cash dividend, citing tax law changes, reduced availability of excess tax distributions, and a focus on reducing net debt leverage.
On February 25, 2026, during the earnings call, CFO Kirn stated that the largest driver of the shortfall versus internal expectations was the “December hit to vehicle margins as we accelerated the cleansing of our inventory.” On February 25, 2026, the company’s stock fell $1.79, or 16.5%, to close at $9.06 per share on unusually heavy trading volume.
Why This Development May Be Significant for Shareholders
The allegations describe a situation in which investors who purchased Camping World shares during the class period may have done so based on public statements that, according to the complaint, did not reflect material risks and operational challenges the complaint alleges were known within the company. The complaint contends that the company’s inventory management capabilities were overstated, that consumer demand projections were inflated, and that SG&A reduction guidance lacked a reasonable basis given the company’s internal systems and actual conditions.
For investors who held or purchased shares between April 29, 2025, and February 24, 2026, the two alleged corrective disclosure events coincided with sharp declines in stock prices. The complaint alleges a 24.8% decline on October 29, 2025, and a further 16.5% decline on February 25, 2026. The complaint argues that the gap between what was publicly stated and what was internally known caused the company’s securities to trade at artificially inflated prices during the class period, resulting in losses when the alleged truth was disclosed.
The Legal Framework Behind the Claims
The lawsuit asserts claims under two provisions of the Securities Exchange Act of 1934. The first count alleges violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder against all defendants, based on the alleged making of materially false and misleading statements and omission of material adverse facts regarding the company’s business, operations, and financial prospects. The second count alleges violations of Section 20(a) of the Exchange Act against the individual defendants, Lemonis, Wagner, and Kirn, on the theory that as senior executives with control over the company’s disclosures, they bear liability as controlling persons for the underlying violations alleged against the company.
The plaintiff alleges that the combined effect of these alleged misstatements and omissions was to artificially inflate the price of Camping World securities during the class period and that investors sustained losses when the alleged misrepresentations were corrected.
Investors who believe they may have been affected by the events described in this lawsuit are encouraged to learn more about their potential legal rights.
About Levi & Korsinsky, LLP
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