Malibu Boats OKs $100M Settlement in Product-Liability Case
- July 03rd, 2023
- 469 views
Malibu Boats, Inc. (Nasdaq: MBUU) previously disclosed that it and its subsidiary, Malibu Boats, LLC, were defendants in two product liability cases (the Batchelder Matters).
These cases involve a personal injury accident from 2014, which occurred with a 2000 model year Response LX boat manufactured by Malibu Boats West, Inc. (West). It is important to note that West, although its assets were acquired by Boats LLC in 2006, has never been a subsidiary of Malibu Boats, Inc.
According to a regulatory filing with the SEC, the company has entered into a Confidential General Release and Settlement Agreement, agreeing to pay a total of $100.0 million to the plaintiffs involved in the Batchelder Matters. $40.0 million will be paid promptly, with the remaining $60.0 million held in an escrow account until certain conditions are met.
The settlement expense will be charged to the company's net income in the fourth quarter of 2023. Despite the settlement, the company reaffirms its previously announced guidance for fiscal year 2023 net sales and Adjusted EBITDA margin.
$MBUU closed at $59.41 (+1.28%) on Monday.
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