Malibu Boats falls after 15 dealerships file complaint on agreement breach

Malibu Boats

11/04/2024 22:53

** Shares of recreational power-boat maker Malibu Boats
 MBUU.O  fall 2% to $40.98 aftermarket
    **  Fifteen dealerships operated under marine dealership
company Tommy's Boats filed a complaint against co
    ** Cite breach of obligations under dealership agreements
    ** Tommy's Boats is seeking monetary damages for complaint
filed in Eastern District of Tennessee
    ** Tommy's Boats' lender also suing co for violating
agreements Tommy's used to finance purchase of Malibu's boats
    ** Co intends to defend against claims alleged, says is
engaged with dealership network to mitigate marketplace
disruption
    ** "Tommy's was formerly a longtime dealer partner of ours,
and we ended our relationship due to concerns about Tommy's own
conduct and its financial soundness" - Malibu Boats
    ** YTD, stock had fallen ~24%

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))