An investor, who purchased shares of Malibu Boats, Inc. (NASDAQ: MBUU), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Malibu Boats, Inc. in connection with certain allegedly false and misleading statements made between November 4, 2022 and April 11, 2024.
If you purchased a significant amount of shares of Malibu Boats, Inc. (NASDAQ: MBUU) between November 4, 2022 and April 11, 2024, and / or if you purchased any NASDAQ: MBUU shares prior to November 2022 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: June 28, 2024. NASDAQ: MBUU investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
Loudon, TN based Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats.
Malibu Boats, Inc. reported that its Total Revenue rose from over $1.21 billion for the 12 months period that ended on June 30, 2022, to over $1.388 billion for the 12 months period that ended on June 30, 2023.
On February 20, 2024, before the market opened, Malibu Boats, Inc. announced the Company’s Chief Executive Officer (“CEO”) had “mutually agreed” to cease to serve as CEO.
Then, on April 11, 2024, after the market closed, Malibu Boats, Inc. revealed that Tommy’s Boats (“Tommy’s”) had filed a complaint against the Company. After the Company disclosed news of the lawsuit, various media outlets publicized the Complaint, which alleged the Company “engaged in an elaborate scheme” to “pump nearly $100 million” worth of inventory into Tommy dealerships since late 2022 to “artificially inflate Malibu’s sales performance.” According to the Complaint, Malibu Boats forced the Company’s highest priced, highest margin, slow moving “Malibu” branded inventory (as opposed to the lower-margin, but faster moving “Axis” brand) onto Tommy’s dealerships. Malibu Boats recognizes a sale when the dealer takes delivery of the boat, regardless of whether it has been sold to the end user. As a result, this scheme enabled the Company to represent that it experienced strong wholesale demand and sales, even as sales to the end user declined. The Complaint revealed that, approximately one week prior to the Company announcing the separation with Defendant Springer, certain “Malibu stakeholders” admitted to the principal of Tommy’s dealerships that Malibu was in fact “intentionally pumping Tommy’s full of inventory.” The Complaint further alleged the Company withheld payment of incentives from Tommy’s for nearly two years before suddenly cutting ties with Tommy’s.
Shares of Malibu Boats, Inc. (NASDAQ: MBUU) declined from $65.45 per share on February 02, 2023, to as low as $32.90 per share on April 25, 2024.
According to the complaint the plaintiff alleges on behalf of purchasers of Malibu Boats, Inc. (NASDAQ: MBUU) common shares between November 4, 2022 and April 11, 2024, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 4, 2022 and April 11, 2024, the Defendants failed to disclose to investors 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 fifteen Tommy’s dealerships”, that, as a result, the Company artificially inflated Malibu’s sales performance, market share, and stock value, that the Company was withholding certain incentives and rebates from its dealers, that, as a result of the foregoing, the Company faced substantial risk of litigation from one of its top dealers, Tommy’s, that the Company’s CEO departed due to this role in this scheme, and that, 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.
Those who purchased shares of Malibu Boats, Inc. (NASDAQ: MBUU) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About:
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
