Quote Originally Posted by Mxmark4 View Post
So did they settle because Tommys had proof they slammed them with high markup boats they couldnt sell or is 3.5 million what it takes to make them go away?
Each side will have their story and it will be different reasons for each side to settle.

From the Tommy’s perspective, a good team of attorneys costs big dollars. There was a chance they could loose. So if they loose, the attorneys will be covered on guaranteed payment. I do not know their financial situation outside of $100m+ owed to creditors. It might be $3.5m b/c it’s guaranteed - better than getting nothing and more lawyer bills. Plus, court cases take lots of time.

For BU, by a public company settling the case, it gets this behind them. One less thing for investors to be concerned about. Liability is limited to the $3.5m, which is a small amount for large company.

I recall BU settled a wrongful death lawsuit in 2013 for $100 million following the 2014 death of 7-year-old in Georgia. Jury verdict was originally for $200m. A boy fell out of the rental boat (2000 Malibu Response LX) driven by his uncle when they hit a wake. BU was responsible b/c of swamping risks after the risk was known to the company.

Also recall reading BU only had $25m of insurance at the time of that 2014 case.


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