According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose 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 Boats (“Tommy’s”)] dealerships”;
- as a result, Malibu Boats artificially inflated Malibu Boats’ sales performance, market share, and stock value;
- Malibu Boats was withholding certain incentives and rebates from its dealers;
- as a result of the foregoing, Malibu Boats faced substantial risk of litigation from one of its top dealers, Tommy’s;
- Malibu Boats’ Chief Executive Officer departed due to this role in this scheme; and
- as a result of the foregoing, defendants’ positive statements about Malibu Boats’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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