On February 20, 2024, before the market opened, Malibu Boats announced the Company and its CEO Jack Springer had “mutually agreed” to step down as CEO.

Following 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 had filed a lawsuit against the Company which alleged Malibu Boats “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.”

Following 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 alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) 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) as a result, the Company artificially inflated Malibu’s sales performance, market share, and stock value; (3) the Company was withholding certain incentives and rebates from its dealers; (4) as a result of the foregoing, the Company faced substantial risk of litigation from one of its top dealers, Tommy’s; and (5) the Company’s CEO departed due to this role in this scheme.

Investors who purchased or acquired Malibu Boats securities between November 4, 2022 and April 11, 2024, may no later than June 28, 2024, seek to be appointed as a lead plaintiff representative of the class.