MGP Ingredients, Inc. Class Action: Shareholders Urged to Connect with Robbins LLP

SAN DIEGO, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Robbins LLP is reminding investors that a class action has been filed on behalf of all individuals who purchased or acquired common stock of MGP Ingredients, Inc. (ticker: MGPI) between May 4, 2023, and October 30, 2024.

MGP Ingredients, Inc. is primarily engaged in the production and sale of alcoholic beverages, which include a wide variety such as tequila, bourbon, rye, and other types of whiskey, alongside grain-neutral spirits like vodka and gin.

About the Class Action

This class action comes in light of significant allegations against MGPI. The complaint asserts that during the stated class period, the company misled investors about the actual demand for its products and the inventory levels. Specifically, it is alleged that MGPI executives repeatedly claimed a strong market demand and normal inventory for their brown goods (including American whiskeys and tequila). In reality, there was a slowdown in consumption along with an oversupply of products.

Furthermore, the defendants allegedly provided assurances to investors that the company was in a better position compared to competitors, suggesting there was no need for concern. However, the lawsuit claims that MGPI had not effectively mitigated the risks associated with these issues.

Significant Price Drops

The situation escalated on October 17, 2024, when MGPI finally acknowledged that softening demand and excess inventory were significantly harming sales performance. Following this announcement, the stock price saw a sharp decline of $24.07, which represents a 29.5% drop from a closing price of $81.57 down to $57.50 in just three trading days.

On October 31, 2024, MGPI revealed that the surplus inventory would adversely affect sales in 2025 even more than previously anticipated. As a consequence, the company announced plans to scale back certain operations aimed at cost-saving measures, which resulted in another stock price decrease of $8.27 per share, or 14.7%, closing at $48.08 per share.

Next Steps for Shareholders

Shareholders who wish to participate in the class action against MGP Ingredients, Inc. must file their application to serve as lead plaintiff by February 14, 2025. Acting as a lead plaintiff means representing other class members in steering the lawsuit forward. Importantly, individuals are not required to actively participate in the lawsuit to claim a recovery. Those who decide to take no action will remain absent class members.

For additional information regarding this situation or to inquire more about the class action, investors can submit a form, email attorney Aaron Dumas, Jr., or reach out via phone at (800) 350-6003.

About Robbins LLP

While various law firms may announce news related to this class action material, Robbins LLP is recognized for actually litigating securities class actions. Established in 2002, the firm focuses on protecting shareholder rights, assisting investors in recovering their losses, and holding executives accountable for corporate misconduct. Robbins LLP has successfully recovered over $1 billion for shareholders since its inception.

To be alerted about any potential settlement in the class action against MGP Ingredients, or to receive notifications regarding corporate wrongdoing by executives, interested parties can subscribe to the Stock Watch service.

Note: All representation is under a contingency fee basis, meaning shareholders are not responsible for fees or expenses unless a recovery is achieved.

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