| COMPANY |
MGP Ingredients, Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
24-cv-09685 |
| JUDGE |
The Hon. Jeannette Anne Vargas |
| CLASS PERIOD |
May 4, 2023, through October 30, 2024 |
| SECURITY TYPE |
Common Stock |
LEAD PLAINTIFF DEADLINE IS FEBRUARY 14, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on May 4, 2023 when, before the markets opened, MGPI announced its financial results for its first fiscal quarter for 2023, which beat analyst estimates. In its Form 8-K filed with the SEC on the same date, MGPI stated that “[s]ales of brown goods grew 10% from the prior year period to record levels, driven by strong new distillate customer commitments, higher pricing across all brown goods, and stronger than expected customer demand for spot purchases. Within our Branded Spirits segment, revenue grew 2% and we recently realigned our national distribution capabilities with Republic National Distributing Company (“RNDC”) toward the end of the quarter. We believe this realignment with RNDC, as well as continued investment in our premium plus family of spirits brands, continues to position us well for incremental growth and margin expansion opportunities going forward.” Likewise, during the earnings conference call that took place the same day, MGPI highlighted the impressive growth the company was experiencing and reiterated its optimism with regard to demand for the company’s products, including that “demand for our products in each of our three segments remains strong and we believe our business continues to be well positioned.”
On October 17, 2024, the truth was partially revealed when MGPI disclosed that sales were expected to decline 24% in the third quarter 2024, compared to the third quarter 2023, and that the company now expected financial results to be below its prior guidance due to soft demand and high inventories. On this news MGPI’s stock price fell $19.71, or 24.2%, to close at $61.86 per share on October 18, 2024.
Then, on October 31, 2024, the full truth was revealed when MGPI disclosed that 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, or 14.7%, to close at $48.04 per share on October 31, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there had been a slowdown in consumption and oversupply in their products; and (2) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.