Malibu settles lawsuit, revises 2014 results to show loss
Malibu Boats has agreed to pay $20 million to settle litigation claiming its windshields violate the intellectual property rights of Pacific Coast Marine Windshields Ltd.
Less than a week after releasing its 4th quarter and annual results for fiscal year 2014 (ending June 30), the company is also revising those numbers to reflect the impact of the settlement on its revenue.
Most notably, the company is now reporting a net loss of $10.6 million for the fourth quarter, compared to the previously reported net income of $5.4 million. Net loss for the fiscal year ended June 30, 2014, was $1.2 million, compared to the previously disclosed net income of $14.8 million.
Malibu has agreed to pay $20.0 million in cash to the plaintiffs, PCMW and Darren Bach, upon entry into a definitive settlement agreement or such later date as the parties agree, and the parties have released each other from all past and present claims. The plaintiffs have agreed not to sue on now-existing intellectual property rights.
“We are very pleased to have reached a settlement of this long-standing litigation and to put this matter behind us. The settlement enables us to now fully focus on our current and future opportunities,” Malibu CEO Jack Springer said in a statement.
