NEW YORK - January 29, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against MGP Ingredients, Inc. (“MGP” or the “Company”) (NASDAQ: MGPI) on behalf of investors that purchased or otherwise acquired MGP securities between May 4, 2023 and October 30, 2024 (the “Class Period”).
If you are an investor in MGP and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than February 14, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process.
On October 17, 2024, after markets closed, MGP issued a press release announcing preliminary third quarter 2024 results. The Company revealed, among other things, that sales were expected to decline 14% compared to the prior year’s third quarter. Further, Chief Executive Office, David Bratcher, said “[s]oft alcohol spirts category trends and elevated industry-wide whiskey inventories are putting a greater than expected pressure on our brown goods business with a larger impact on our smaller, craft customer base.”
Following this news, the price of MGP stock price fell $19.71 per share, over 24%, to close at $61.86 per share on October 18, 2024.
On October 31, 2024, the Company provided additional details in a press release and during a conference call to discuss third quarter 2024 results. Among other things, CEO Bratcher stated “we are reducing our whiskey production and aging whiskey put aways in 2025 to better align with lowered category demand.”
The complaint alleges, among other things, that throughout the Class Period, Defendants repeatedly touted a strong demand and “normal” inventory levels in brown goods (i.e., American whiskies and tequila), when in fact there had been a slowdown in consumption and oversupply in those products. Additionally, Defendants had assured investors that MGP was positioned differently than its competitors, and that this was a non-issue, because the Company had already taken steps to mitigate the risk, when in fact it had not.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
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