Malibu Boats (MBUU) Crashes on Dealer’s Allegations of Scheme to Artificially Inflate Sales – Hagens Berman
HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages MBUU Investors with Substantial Losses to Contact Firm’s Attorneys
SAN FRANCISCO, April 16, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Malibu Boats, Inc. (NASDAQ: MBUU) investors who suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/MBUU
Contact An Attorney Now: [email protected]
844-916-0895
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.
“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,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Malibu Boats and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Malibu Boats investigation, read more »
Whistleblowers: Persons with non-public information regarding Malibu Boats should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Contact:
Reed Kathrein, 844-916-0895
