SAN DIEGO, Dec. 23, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired MGP Ingredients, Inc. (NASDAQ: MGPI) common stock between May 4, 2023 and October 30, 2024. MGPI is a company 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.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that MGP Ingredients, Inc. (MGPI) Misled Investors Regarding Demand and Inventory Levels
According to the complaint, during 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 their products. Further, defendants had assured investors that they were positioned differently than their 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.
The complaint alleges that on October 17, 2024, MGPI finally admitted that soft demand and high inventories were undermining sales. On this news, MGPI’s share price declined $24.07 per share, or 29.5%, from a closing price of $81.57 per share to a closing price of $57.50 per share three trading days later on October 22, 2024.
Then, on October 31, 2024, defendants confessed that the excess inventories would have an “even greater impact” on sales in 2025 than previously stated, forcing the Company to scale back certain operations to save money. On this news, MGPI’s stock price fell $8.27 per share, or 14.7%, to close at $48.08 per share.
What Now: You may be eligible to participate in the class action against MGP Ingredients, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by February 14, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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