Item 8.01. Other Events As previously disclosed,Malibu Boats, Inc. , (the "Company") and its indirect subsidiaryMalibu Boats, LLC ("Boats LLC ") are defendants in the product liability case brought byStephen Paul Batchelder andMargaret Mary Batchelder , individually, and as Administrators of the Estate ofRyan 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 byBoats 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. OnAugust 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 thatBoats 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 thatBoats 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 toBoats LLC and 10% of such damages to West. The jury also awarded$80 million of punitive damages againstBoats LLC and$40 million of punitive damages against West. Based on the jury's finding of successor liability, whichBoats LLC contends is erroneous, immediately after the verdict the trial court entered judgment againstWest and Boats LLC , with a potential maximum liability toBoats LLC of$140 million . While the Company andBoats 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/aMalibu 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 endedJune 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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