Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Malibu Boats, Inc. (“Malibu Boats” or the “Company”) (NASDAQ: MBUU) securities between November 4, 2022 and April 11, 2024, inclusive (the “Class Period”). Malibu Boats investors have until June 28, 2024 to file a lead plaintiff motion.

Investors suffering losses on their Malibu Boats investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On February 20, 2024, before the market opened, Malibu Boats announced the Company’s Chief Executive Officer (“CEO”) 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 unusually heavy trading volume.

Then, on April 11, 2024, after the market closed, Malibu Boats 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.

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, on unusually heavy trading volume. The Company’s common stock price continued to fall the next consecutive trading session, falling $2.34 or 6% to close at $36.14 per share on April 15, on unusually heavy trading volume.

The complaint filed in this class action 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.

If you purchased Malibu Boats securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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