Bronstein, Gewirtz & Grossman LLC reminds Malibu Boats, Inc. investors to join the class action lawsuit!

NEW YORK, NY / ACCESSWIRE / May 29, 2024 / Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Malibu Boats, Inc. (“Malibu Boats” or “the Company”) (NASDAQ: MBUU) and certain of its officers.

Class definition:

This action seeks to recover damages from Defendants for alleged violations of the federal securities laws on behalf of all persons and entities who purchased or otherwise acquired Malibu Boats securities between November 4, 2022 and April 11, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the Company’s website: bgandg.com/MBUU.

Case details:

According to the complaint, Malibu Boats is a designer, manufacturer, and marketer of recreational powerboats, including high-performance sport boats, sterndrive boats, and outboard motors. The Company claims to be the market leader in the high-performance sport boat category with its Malibu and Axis boat brands. The Company sells boats through 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-branded boats.

On February 20, 2024, prior to market opening, Malibu Boats announced that the Company’s Chief Executive Officer (“CEO”), defendant Jack Springer, had “mutually agreed” to resign from his role 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, amid unusually high trading volume, the complaint states.

The complaint alleges that throughout the Class Period, Malibu Boats made materially false and/or misleading statements and 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, according to the complaint filed in a lawsuit Tommy filed against Malibu Boats, “engaged in an elaborate plan to overproduce nearly $100 million worth of its highest-priced, highest-margin, lowest-moving boats from its inventory and pump them into fifteen () Tommy’s dealerships”;

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

(3) that the company withheld certain incentives and discounts from its dealers;

(4) that, as a result of the foregoing circumstances, the Company was exposed to a significant risk of litigation by one of its largest retailers, Tommy’s;

(5) that the CEO of the company resigned because of his role in that system; and

(6) that it follows from the foregoing that the positive statements made by the defendants about the business, operations and prospects of the Company were materially misleading and/or lacked a reasonable basis.

According to the lawsuit, after Malibu Boats announced that Tommy’s had filed a lawsuit against the company, the company’s stock price fell $3.34, or 7.99%, to close at $38.48 per share on April 12, 2024, amid unusually heavy trading volume. The price of the company’s common stock continued to fall in the next trading session, falling $2.34, or 6%, to close at $36.14 per share on April 15, amid unusually heavy trading volume.

According to the lawsuit, Malibu Boats investors suffered significant losses and damages as a result of the defendants’ unlawful acts and omissions and the rapid decline in the market value of the company’s securities.

What’s next?

A class action lawsuit has already been filed. If you would like to review a copy of the lawsuit, you may visit the firm’s website: bgandg.com/MBUU or you may contact Peretz Bronstein, Esq. or his Client Relations Manager Nathan Miller of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Malibu Boats, you have until June 28, 2024 to request that the court appoint you as lead plaintiff. Your ability to share in any compensation is not dependent on your serving as lead plaintiff.

There are no costs for you

We represent investors in class action lawsuits on a contingency basis, meaning we ask the court to reimburse us for our expenses and attorney fees (usually a percentage of the total award) only if we win.

Why Bronstein, Gewirtz & Grossman:

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized law firm representing investors in securities fraud class action lawsuits and shareholder actions involving derivatives trading. Our firm has recovered hundreds of millions of dollars for investors nationwide.

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