Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Feb. 04, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises MGP Ingredients, Inc. (“MGP Ingredients” or the “Company”) (NASDAQ: MGPI) investors of a class action representing investors that bought securities between May 4, 2023 and October 30, 2024, inclusive (the “Class Period”). MGP Ingredients investors have until February 14, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
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.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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