A securities class action has been filed in the USDC — S.D.N.Y. against Malibu Boats, Inc. (MBUU) (“Malibu Boats” or the “Company”), on behalf of all persons or entities who purchased or otherwise acquired Malibu Boats securities between November 4, 2022 and April 11, 2024, both dates inclusive (the “Class Period”).

Malibu Boats is a designer, manufacturer, and marketer of recreational powerboats, including performance sport, sterndrive, and outboard boats. The Company purports to be a market leader in the performance sport boat category through 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 Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:

(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 fifteen Tommy’s dealerships”;

(2) that, as a result, the Company artificially inflated Malibu’s sales performance, market share, and stock value;

(3) that the Company was withholding certain incentives and rebates from its dealers;

(4) that, as a result of the foregoing, the Company faced substantial risk of litigation from one of its top dealers, Tommy’s;

(5) that the Company’s CEO departed due to this role in this scheme; and

(6) 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, thereby harming investors.

If you purchased Malibu Boats securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

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