U.S. Markets closed

Polaris Industries gets unfavorable verdict in boat collision suit

Polaris Industries announced that a Los Angeles County jury returned an unfavorable verdict against Polaris on July 23 in the Esparza vs. Polaris lawsuit arising out of a collision between a boat and a 2001 Polaris Virage personal watercraft that occurred on the Colorado River in 2008. The jury awarded approximately $21M in damages. Although Polaris cannot determine its potential liability with certainty because the judgment has not yet been entered, Polaris estimates its maximum potential liability in this case is $11M of the total damages. It is anticipated that Polaris will record a non-recurring loss from discontinued operations of up to approximately $4M, net of tax, or approximately 6c per diluted share, in Q3. The company’s previously issued guidance for sales and earnings from continuing operations does not change.