Item 8.01. Other Events
As previously disclosed, Malibu Boats, Inc., (the "Company") and its indirect
subsidiary Malibu Boats, LLC ("Boats LLC") are defendants in the product
liability case brought by Stephen Paul Batchelder and Margaret Mary Batchelder,
individually, and as Administrators of the Estate of Ryan Paul Batchelder,
deceased ("Plaintiffs"). Plaintiffs also sued the manufacturer of the boat at
issue in the case, Malibu Boats West, Inc. ("West"). West is not, and has never
been, a subsidiary of the Company but was a separate legal entity whose assets
were purchased by Boats LLC in 2006. The case involves a personal injury
accident in 2014 involving the propeller of a 2000 model year boat that was
manufactured by West.
On August 28, 2021, the jury rejected the Plaintiffs' design defect claims and
found that the driver of the boat was 75% at fault for the accident.
Notwithstanding those findings, the jury found that Boats LLC and West
negligently failed to warn of a hazard posed by the relevant boat and that such
failure was a proximate cause of the death of the decedent. The jury also found
that Boats LLC is a legal successor of, and responsible for the liabilities of,
West. The jury awarded compensatory damages of $80 million and apportioned 15%
of such damages to Boats LLC and 10% of such damages to West. The jury also
awarded $80 million of punitive damages against Boats LLC and $40 million of
punitive damages against West. Based on the jury's finding of successor
liability, which Boats LLC contends is erroneous, immediately after the verdict
the trial court entered judgment against West and Boats LLC, with a potential
maximum liability to Boats LLC of $140 million. While the Company and Boats LLC
maintain product liability insurance applicable to this case, such insurance
coverage may be limited to $26 million.
The Company strongly disagrees with the verdict and the judgment, and intends to
file post-trial motions with the trial judge. The Company intends to appeal in
the event its post-trial motions are unsuccessful. Pending resolution of the
post-trial and appeals process, the payment of any damages in this matter is
expected to be stayed. The name of the case is Batchelder et al. v. Malibu
Boats, LLC, f/k/a Malibu Boats, Inc.; Malibu Boats West, Inc., et. al., Superior
Court of Rabun County, Georgia, Civil Action Case No. 2016-CV-0114-C.
This Current Report on Form 8-K contains forward-looking statements. All
statements other than statements of historical facts contained in this Form 8-K
are forward-looking statements, including statements regarding the litigation
described above, the Company's assessment of such litigation and any actions the
Company may take in response to the jury's findings and trial court's judgment,
including any post-trial motions and appeals, and the ultimate impact of such
litigation on the Company's business and financial condition. Actual results may
differ materially from those suggested by the forward-looking statements for
various reasons, including those discussed under "Item 1A. Risk Factors" in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2021.
You should not rely on forward-looking statements as predictions of future
events. Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot guarantee future
results, levels of activity, performance or achievements. Except as required by
law, the Company assumes no obligation to update forward-looking statements for
any reason after the date of this Form 8-K to conform these statements to actual
results or to changes in the Company's expectations.

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