A securities class action has been filed in the USDC — S.D.N.Y. against MGP Ingredients, Inc. (MGPI) (“MGPI”, or the “Company”), on behalf of all those that purchased or otherwise acquired MGPI publicly traded common stock between February 23, 2022, and October 30, 2024, both dates inclusive (the “Class Period”).
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. The COVID-19 pandemic drastically changed the alcohol consumption habits of consumers around the globe. In the United States, studies have shown that there was a considerable uptick in alcohol consumption in 2020, as shown by a significant increase in retail sales. These studies also suggest that during the pandemic, about 25% of people consumed more alcohol than did prior to the pandemic, and that sales of hard liquor (i.e., spirits), accounted for most of the increase.”
The claim arises shortly after the market opened on October 31, 2024, when Defendants then 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.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, 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. Worse, 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.
As a result, on October 31, 2024, MGPI’s share price further declined $8.27 per share, or 14.7%, from a closing price of $56.31 on October 30, 2024 to a closing price of $48.04.
If you purchased MGPI publicly traded common stock during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information.”
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