SAN DIEGO, Dec. 20, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired MGP Ingredients, Inc. (NASDAQ: MGPI) (“MGPI” or the “Company”) common stock between May 4, 2023 through October 30, 2024 (the “Class Period”), charging the Company and certain of its current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
MGPI investors have until February 14, 2025 to seek appointment as lead plaintiff of the MGPI class action lawsuit.
If you purchased or acquired MGPI common stock between May 4, 2023 through October 30, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/mgpi/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
MGPI is an American distilled spirits producer that manufactures, distills, and sells alcoholic beverages such as tequila, bourbon, rye, and other whiskeys, as well as grain-neutral spirits such as vodka and gin under different brand names and under its own labels.
The MGPI lawsuit alleges that Defendants issued false and misleading statements and/or concealed material adverse facts concerning MGPI’s business, operations, and prospects during the Class Period. Specifically, Defendants repeatedly advertised a strong demand and “normal” inventory levels in MGPI’s brown goods (i.e., American whiskies and tequila), when consumption of such goods had slowed and there was an oversupply in MGPI’s products. Further, Defendants assured investors that the Company was better positioned than its competitors, and would not be impacted, as MGPI had already initiated actions to decrease the risk of lower consumption and product oversupply, but in reality, it had not.
The truth began to emerge on October 17, 2024, when MGPI reported its preliminary financial results for the third quarter of fiscal 2024. In the related press release, the Company announced its sales were expected to decline 14% from the prior year’s third quarter, and explained that “[s]oft alcohol spirits category trends and elevated industry-wide whiskey inventories are putting greater than expected pressure on our brown goods business.”
On this news, the price of MGPI stock fell by $24.07 per share, or nearly 30%, to close at $57.50 per share three trading days later.
Then, on October 31, 2024, MGPI provided more details when Defendants pointed to “the softening American whiskey category trends and elevated industry-wide barrel inventories” as the source of its troubles, requiring the Company “to further lower [its] net aging whiskey put away, scale down [its] whiskey production, and optimize [its] cost structure to mitigate lower production volumes.” These statements were followed by the Company announcing it was “significantly reducing [its] brown goods production to better align with demand in 2025.”
On this news, the price of MGPI stock declined by $8.27 per share, or nearly 15%, to close at $49.04 per share on October 31, 2024.
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