NEW YORK, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired MGP Ingredients, Inc. (“MGP Ingredients” or the “Company”) ( MGPI) securities between May 3, 2023 and October 30, 2024, inclusive (the “Class Period”).
The Complaint alleges that MGP Ingredients made materially false and/or misleading statements and/or failed to disclose a slowdown in consumption and oversupply in their brown goods (i.e., American whiskies and tequila products).
On February 22, 2024, MGP Ingredients provided guidance for fiscal year 2024 with a midpoint that was 4.9% below analyst consensus. During an earnings call that same day, President and Chief Executive Officer David S. Bratcher confirmed industry reported that “inventory destocking at a wholesale level will remain an issue for the branded spirits industry in 2024.” On this news, MGP Ingredients’ stock price fell $13.65 per share, or 14.86%, to close at $78.18 per share on February 22, 2024.
Then, on October 17, 2024, MGP Ingredients admitted that soft demand and high inventories were undermining sales. The following day, Wells Fargo published a report noting that it was lowering its expectations for MGP Ingredients stock price, stating that the Company had “credibility issues.” Following this announcement and Wells Fargo’s report, the Company’s stock price fell $19.71 per share, or 24.16%, to close at $61.86 per share on October 18, 2024. Finally, on October 31, 2024, MGP Ingredients disclosed 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. Following this news, MGP Ingredients’ stock price fell $8.27 per share, or 14.69%, to close at $48.04 on October 31, 2024.
Investors who purchased or otherwise acquired shares of MGP Ingredients should contact the Firm prior to the February 14, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
