New York, New York--(Newsfile Corp. - December 23, 2024) - The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired MGP Ingredients, In. ("MGP Ingredients" or the "Company") (NASDAQ: MGPI) securities during the period of May 4, 2023 to October 30, 2024 ("the Class Period"). Investors have until February 14, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On February 22, 2024, the Company reported its financial results for the fourth quarter of fiscal year 2023 and provided guidance for fiscal year 2024. While the results for 2023 exceeded expectations, the 2024 revenue forecast was 4.9% lower than expected. During the earnings call, the Company acknowledged industry reports of ongoing "inventory destocking at a wholesale level" in 2024 and emphasized its efforts to manage wholesaler inventory. CEO David Bratcher also pointed out that over 90% of the Company's new whiskey sales for 2024 were already locked in, while only about 50% of their older, aged whiskey sales were guaranteed. This shows the Company shifting its focus more toward selling newer whiskey. Despite reassurances that demand remained strong and the business was positioned for growth, the market reacted negatively. On this news, the price per share of MGP Ingredients declined by $13.65, or approximately 15%, from $91.83 per share on February 21, 2024, to close at $78.14 per share on February 22, 2024.
Then, on October 17, 2024, MGP Ingredients reported preliminary third-quarter results, revealing a 14% decline in sales year-over-year and lowering its fiscal 2024 guidance. The Company cited elevated industry-wide whiskey inventories and slowing demand for brown goods, particularly among craft customers. Analysts criticized the announcement as "breathtaking" and a "material surprise," with concerns over credibility and visibility into future performance. On this news, MGP Ingredients' price per share fell by $24.07 per share, or nearly 30%, from $81.57 on October 17, 2024, to close at $57.50 on October 21, 2024.
Furthermore, on October 31, 2024, MGP Ingredients disclosed additional challenges, acknowledging that soft American whiskey trends and excess inventories would require scaling back production. During the earnings call, executives admitted to reduced demand, lower prices, and diminished visibility. On this news, the share price declined by $8.27 per share, or nearly 15%, from $56.31 on October 30, 2024, to close at $48.04 on October 31, 2024.
The complaint alleges that, throughout the Class Period, 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).
If you purchased or otherwise acquired MGP Ingredients securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
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Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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