Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of MGP Ingredients, Inc. (MGPI) Investors

Mar 05, 2020 11:00 am
LOS ANGELES -- 

Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased MGP Ingredients, Inc. ("MGP" or the "Company") (NASDAQ: MGPI) common stock between February 27, 2019 and February 25, 2020, inclusive (the “Class Period”). MGP investors have until April 28, 2020 to file a lead plaintiff motion.

If you suffered a loss on your MGP investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email [email protected] or visit our website at www.glancylaw.com to learn more about your rights.

On January 17, 2020, MGP pre-announced its preliminary financial results for fiscal year 2019 that fell significantly below its guidance. The Company reported that net sales declined 4% year-over-year, rather than mid-single digit growth, and that operating income declined 9% year-over-year, rather than the 10%-20% growth represented to investors.

On this news, MGP's stock price fell $14.60 per share, or over 27%, to close at $38.18 per share on January 17, 2020, thereby injuring investors.

Then, on February 26, 2020, MGP announced its finalized financial results for fiscal year 2019, confirming its earlier pre-announcement that the Company had fallen "significantly short of . . . guidance." According to MGP’s Chief Executive Officer, MGP had been “unsuccessful in transacting a large portion of the aged whiskey sales . . . forecast for the fourth quarter.”

On this news, MGP's stock price fell $3.38 per share, or over 10%, to close at $28.42 per share on February 26, 2020, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that MGP had not completed any significant sales of its four-year-old aged-whiskey inventory; (2) that the Company had been unable to sell its aged whiskey at the price premium represented to investors; (3) that a glut of aged whiskey inventory and shifts in consumer behavior had lowered the value of the Company’s aged whiskey inventory and materially impaired its ability to negotiate significant sales on favorable contract terms; and (4) that, in light of the foregoing, the Company’s fiscal year 2019 financial forecast lacked a reasonable basis and was materially misleading.

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If you purchased MGP common stock during the Class Period, you may move the Court no later than April 28, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Prongay and Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
www.glancylaw.com
[email protected]