Malibu Boats, Inc. (MBUU) Investigation

On Apr. 15, shares in Malibu Boats declined appx. 8% and reached a four year low on news of a sensational lawsuit brought by one of the company’s largest dealerships.

Late last week, Tommy’s Boats, a dealership that has accounted for approximately one-third of Malibu’s powerboat sales, filed a verified complaint in Tennessee federal court, alleging the company 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 (15) Tommy’s dealerships in order to artificially inflate Malibu’s sales performance, artificially claim increased market share in the industry and artificially inflate its stock value during an obvious and known downturn in the recreational power boat industry.

According to the complaint, to house the additional supply, Tommy’s more than tripled its floorplan credit line to $160M to make room for 25 weeks of inventory.

Tommy’s further alleges that Malibu Boats withheld millions of dollars in earned incentives, which forced Tommy’s to default on its floorplan agreement with its lender.

The lawsuit caused securities analysts at Raymond James to downgrade MBUU, stating in a note to its clients that the lawsuit raised questions about where else Malibu could sell some $110 million worth of boats held by Tommy’s, and how that might affect the company's sales and margins.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the MBUU investigation about?

We are investigating whether Malibu Boats may have pumped Tommy’s with excess inventory to create the false impression of sales growth and increased market share.

WHAT SHOULD I DO?

I worked at MBUU. What should I do?

If you were an employee of MBUU, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in MBUU, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any MBUU investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.