MGP Ingredients, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
MGP Ingredients is involved in the production and supply of distilled spirits, branded spirits, and food ingredients.
The class action lawsuit against MGP Ingredients claims that the defendants made false and/or misleading statements and/or failed to disclose important information during the Class Period. Specifically, the lawsuit alleges that, while the defendants spoke positively about MGP Ingredients’ inventory levels and product demand, the reality was that inventory levels had remained unsustainably high. Furthermore, the issue of oversupply in brown goods, which had been a concern for investors, had not been addressed.
The lawsuit further alleges that on February 22, 2024, MGP Ingredients issued its fiscal year 2024 full-year revenue guidance of $749 million at the midpoint, which was 4.9% lower than the street consensus. The company also confirmed that recent industry reports suggested that “inventory destocking at a wholesale level will remain an issue for the Branded Spirits industry in 2024.” As a result, MGP Ingredients’ stock price dropped nearly 15%, according to the complaint.
On October 17, 2024, MGP Ingredients reported its third-quarter fiscal year 2024 results, revealing that sales were expected to decline by 14% from the same period the previous year and that the company had revised its guidance downward. This announcement caused MGP Ingredients’ stock price to fall by nearly 30% over the next three trading sessions, according to the complaint.
Finally, on October 31, 2024, the lawsuit alleges that the defendants acknowledged that “slower growth and higher inventories are leading to lower demand, lower prices, and reduced visibility on our contract distilling sales.” This news caused the price of MGP Ingredients’ stock to drop nearly 15%, according to the complaint.
