Malibu Boats $7.8M Investor Settlement has been reached to resolve claims that the Tennessee-based powerboat maker artificially inflated sales by flooding one of its top dealers with excess inventory, pushing it to the brink of bankruptcy during the post-pandemic industry downturn.
In a Thursday filing in Manhattan federal court, lead plaintiff Retiree Benefit Trust of the City of Baltimore asked U.S. District Judge Lorna G. Schofield to grant preliminary approval, calling the agreement an “excellent result” given Malibu’s dwindling cash reserves and shrinking directors’ and officers’ liability insurance.
Shareholders Secure Above-Average Recovery
The settlement is expected to return between 11% and 32% of estimated damages to investors — a figure notably higher than the 2024 average securities class action recovery of 7.3%, according to the pension fund’s filing.
“This represents a highly favorable result,” the investors said, noting that recoveries could reach four times the national median for similar lawsuits.
