Matthew Borisch built Tommy's into Malibu's largest national dealer. Then inventory, floorplan debt, missing protections, collapsing demand, and broken trust produced four different legal fights.
February 9, 2026: a judge gave final approval to Malibu's $7.8 million investor settlement. Malibu's March 31 SEC filing records the settlement. Recent SEC paperwork, yes; an SEC enforcement lawsuit, no.
The commonly repeated “$100 million” figure blends inventory allegations with bank debt. They overlap economically, but they are not the same claim.
The confusion disappears once each case is treated separately.
Kent County Case 24-03177-CBB. M&T sued on loans and Matt's personal guaranty after default demands. Bankruptcy stayed the company claims, then the guaranty case resumed. On April 14, 2026, the judge denied Borisch's amended fraud counterclaim but wrote that the order did not resolve the case.
Tommy's alleged breach, unpaid incentives, fraud, and inventory pressure. A Chapter 11 trustee voluntarily dismissed the original federal case, then settled estate claims for $3.5 million plus releases and additional Knoxville-related consideration. Matt's later individual suit was constrained by the bankruptcy court.
Seventeen related debtors filed Chapter 11. A trustee replaced management in June 2024, liquidated the business, and mediated with Malibu and M&T. A 2025 opinion held that key Malibu and M&T claims belonged to the bankruptcy estates, not Borisch personally.
Private shareholders alleged Malibu misled investors about inventory and dealer health, invoking the Tommy's allegations. The class covered Nov. 4, 2022–May 1, 2024. A $7.8 million settlement received final approval in February 2026; defendants denied wrongdoing.
The Colorado watersports retailer becomes the origin of the Tommy's brand.
After selling a defense/aerospace business in 2010, the family bought the Colorado dealership in 2012; Matt opened Tommy's Walloon Lake in June 2013.
By 2023 Tommy's allegedly represented roughly 30% of Malibu's national boat sales. At bankruptcy it had 14 dealerships and nine on-water rental programs across eight states.
Borisch alleged Malibu stopped paying substantial incentives and rebates and pushed higher baseline purchases. Malibu disputed entitlement to those payments.
The additional capacity funded larger orders but did not resolve the rebate fight.
M&T provides a $110 million floorplan facility plus a $20 million overlimit. Matt signs a personal guaranty. A customary manufacturer repurchase agreement was discussed but never obtained.
Malibu shipped roughly $6.1 million of new boats July 1; M&T initially refused financing without the repurchase agreement. M&T finally placed the boats on the floorplan in mid-December.
The court record says Tommy's sold boats without timely remitting lender proceeds, violating M&T agreements. Borisch and his father allegedly raised $22 million against assets to cure the issue and add working capital.
Borisch said he sold two other businesses and put another $7 million into Tommy's while negotiations dragged on.
Malibu declined to sign 2024 dealer agreements and terminated Texas locations March 11. M&T issued default demands Feb. 27 and March 28 after Malibu's departure triggered an additional claimed default.
M&T alleged more than $115.9 million principal and $2.2 million accrued interest as of March 27, collateral near $85 million, and out-of-trust proceeds that had reached $16 million.
The complaint alleges Malibu used nearly $100 million of high-margin, slow-moving inventory to inflate wholesale performance, withheld incentives, and abandoned promised repurchases. Malibu denied forced shipments and blamed Tommy's financial conduct.
Tommy's consented, believing a receiver might help pressure Malibu. When that did not happen, management turned to bankruptcy.
The filing listed broad liabilities of $100–500 million. M&T's scheduled disputed claim was about $105 million. The cases pulled operations back from the state-court receiver.
After a failed cash-collateral request, M&T sought a trustee. Tommy's consented; Mark E. Andrews was appointed.
The trustee dismissed Tommy's federal suit July 3. After October 1 mediation, Malibu agreed to pay the estate $3.5 million, release claims, and provide additional Knoxville consideration. Malibu withdrew a reported $9.6 million estate claim.
The judge held that Borisch violated the automatic stay by asserting estate-owned Malibu and M&T claims personally and ordered him to remove or dismiss them.
The liquidation plan was confirmed July 24 and reportedly became effective Aug. 26. Separately, Malibu agreed to a $7.8 million investor-class settlement, without admitting wrongdoing.
The securities action concludes, covering investors who acquired Malibu securities from Nov. 4, 2022 through May 1, 2024.
The Kent County judge found his reliance theories inconsistent with the written guaranty and loan documents. Crucially, the opinion says the underlying guaranty case remains unresolved.
These amounts come from different dates and legal postures. The bars are scaled for orientation, not accounting reconciliation.
M&T also alleged $2.2m accrued interest as of March 27, 2024 at a continuing 13.5% rate, plus fees. The final allowed claim and recoveries require claims-register/distribution analysis.
Tommy's also alleged millions in incentives/rebates. The exact claimed amount varied in descriptions and was compromised in the estate settlement, not adjudicated after trial.
Tommy's expanded rapidly; floorplan capacity grew; Malibu shipments generated wholesale revenue on dealer delivery; a repurchase agreement was never completed; Tommy's sold boats out of trust; the family claimed $29m of rescue capital; the dealer group liquidated.
No reviewed judgment found that Malibu committed fraud or intentionally forced $100m of boats onto Tommy's. Malibu denied the charge. Settlements ended estate and investor claims without a trial finding or admission.
M&T's ultimate recovery and Matt's personal exposure under the guaranty remain unresolved in the latest primary opinion reviewed. A complete answer requires the live Kent County docket and final bankruptcy distribution reports.
Primary records outrank press coverage. Secondary sources are used where the underlying complaint or docket item was not freely retrievable.
Methodology and limitation. Prepared July 12, 2026 from publicly accessible court opinions, SEC filings, company statements, case pages, and document-based reporting. “Alleged” means a party asserted it; it does not mean a court found it true. Settlement amounts do not imply liability. This is research, not legal advice. Before public release, retrieve the complete live Kent County docket, bankruptcy claims register and final distribution reports, the Malibu settlement papers, and any final decree in the lead bankruptcy case.