Malibu Boats comments on litigation by former dealer

Malibu Boats issued a statement in connection with a lawsuit filed by Tommy’s Boats and its related parties in the U.S. District Court for the Eastern District of Tennessee on April 10: “The company intends to vigorously defend itself against the claims made by Tommy’s. 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…we believe it is important to clarify the following points: any and all boats that Malibu sold to Tommy’s were ordered by Tommy’s. Malibu only sold boats to Tommy’s that Tommy’s ordered, and Malibu fulfilled its obligations under its agreements with Tommy’s…Upon learning that Tommy’s was selling out of trust, Malibu engaged with Tommy’s and M&T Bank, on numerous occasions, regarding Tommy’s financial position and potential paths forward…and we therefore ended our relationship with Tommy’s. We do not currently have any dealership agreements in effect with Tommy’s…We have been working with our dealership network and are in discussions with strong dealer partners to limit any service gaps in markets previously served by Tommy’s. We remain committed to serving Malibu’s end-users in all our markets.”