NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against MGP Ingredients, Inc. (NASDAQ: MGPI) on behalf of long-term stockholders following a class action complaint that was filed against MGPI on December 16, 2024 with a Class Period from May 4, 2023 through October 30, 2024. Our investigation concerns whether the board of directors of MGPI have breached their fiduciary duties to the company.
MGPI is a manufacturer of hard liquors such as tequila, bourbon, rye, whiskey, vodka, and gin. MGPI sells the spirits it produces under its own brands as well as to other alcohol distributors and brands. Prior to the Class Period, sales of hard liquors, such as those produced and sold by MGPI, increased dramatically in the wake of COVID-19. However, as quarantines ended, sales of hard liquors slowed across the alcoholic beverage industry, and a backlog of inventory began to increase. The Complaint alleges that during the Class Period, MGPI falsely assured investors that its projections and statements accounted for the industry slowdown and that it was well-positioned to avoid a buildup of inventory. The Company also claimed that its projected sales took these industry trends into account.
MGPI announced on October 17, 2024, that a slowdown in demand and an excess in inventories would undermine sales. This revelation caused the Company’s stock to plummet 29.5%. Then, less than two weeks later, on October 31, 2024, Defendants revealed that its excess inventory would have an even greater impact than previously reported. This caused the Company’s stock to drop another 14.7%, to a close of $49.04 per share on October 31, 2024. In total, MGPI’s share price declined nearly 50% on these two disclosures, wiping out hundreds of millions of dollars in market capitalization and damaging investors.
If you are a long-term stockholder of MGPI, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
