Case Summary

Malibu Boats

NASDAQ: MBUU

Case Details

  • Yoon v. Malibu Boats, Inc. et al.
  • Class Period:November 4, 2022 - April 11, 2024
  • Date Filed:April 29, 2024
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:24-cv-03254
  • Lead Plaintiff Deadline: June 28, 2024
Days Left to
Seek Plaintiff
34

Overview

A class action lawsuit has been filed against Malibu Boats, Inc. (“Malibu Boats” or the “Company”) (NASDAQ: MBUU) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws.  The Malibu Boats lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Malibu Boats securities between November 4, 2022, and April 11, 2024, both dates inclusive (the “Class Period”).  Investors have until June 28, 2024, to seek appointment as lead plaintiff of the Malibu Boats class action lawsuit.

Malibu Boats designs, manufactures, and markets recreational powerboats, including performance sport, sterndrive, and outboard boats.  The Company’s performance sport boat category includes its Malibu and Axis boat brands. The Company sells boats via a network of independent dealers, including dealers operating under the common control of Tommy’s Boats (“Tommy’s”).  In fiscal year 2023, sales to Tommy’s dealers represented approximately 10.7% of the Company’s consolidated net sales and approximately 23.3% of consolidated sales for Malibu brand boats.

The Malibu Boats lawsuit alleges that Defendants failed to disclose: (1) that Malibu Boats engaged in an elaborate scheme to over manufacture and pump nearly $100 million of its highest priced, highest margin, slow moving boat inventory into 15 Tommy’s dealerships; (2) as a result, the Company artificially inflated Malibu Boats’s sales performance, market share, and stock value; (3) the Company withheld certain incentives and rebates from its dealers; (4) as a result of the foregoing, the Company faced substantial risk of litigation from one of its top dealers, Tommy’s; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

As alleged in the lawsuit, on February 20, 2024, before the market opened, Malibu Boats announced the Company’s Chief Executive Officer (“CEO”), Defendant Jack Springer, had mutually agreed to cease to serve as CEO. On this news, the Company’s stock price fell $4.33 or 9.1%, to close at $43.15 per share on February 20, 2024.

On April 11, 2024, after the market closed, Malibu Boats revealed that Tommy’s had filed a lawsuit against the Company.  Thereafter, as further alleged in the lawsuit, various media outlets publicized the Complaint, which detailed the Company’s elaborate scheme to pump nearly $100 million worth of inventory into Tommy dealerships since late 2022 to artificially inflate Malibu Boats’s sales performance.  On this news, the Company’s stock price fell $3.34, or 7.99%, to close at $38.48 per share on April 12, 2024.

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If you purchased or otherwise acquired Malibu Boats securities between November 4, 2022 and April 11, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Malibu Boats lawsuit is June 28, 2024.

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