MGP Ingredients, Inc. Securities Class Action Litigation

Introduction

Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of MGP Ingredients, Inc. (“MGPI” or the “Company”) between May 4, 2023 and October 30, 2024, inclusive (the “Class Period”).

If you purchased or otherwise acquired MGPI common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 14, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

MGPI investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.

Background on the MGP Ingredients, Inc. Securities Class Litigation

MGPI, incorporated and headquartered in Atchison, Kansas, manufactures, distills, and sells alcoholic beverages such as tequila, bourbon, rye, and other whiskeys, as well as grain-neutral spirits such as vodka and gin. Demand for liquor, hard liquor in particular, rose in 2020 due to the COVID-19 pandemic.

The action alleges that, throughout the Class Period, MGPI and certain of its senior executives made materially false and misleading statements regarding the Company’s business and demand for its liquor products. Specifically, Defendants falsely and repeatedly assured investors that the Company was not facing excess inventory issues and demand for its products remained strong.

On February 22, 2024, the truth began to emerge. The Company issued full-year 2024 revenue guidance that was below industry consensus and noted that “inventory destocking at a wholesale level will remain an issue for the branded spirits industry in 2024.” The Company’s new CEO and President assured that the Company had worked hard to manage wholesale inventory levels and that demand for its products remained healthy. Following this news, MGPI’s common stock price fell by $13.65 per share, or nearly 15%, to close at $78.14 per share on February 22, 2024.

On October 17, 2024, MGPI revealed that soft demand and high inventories were in fact undermining its sales. On this news, MGPI’s stock price declined by $24.07, or nearly 30%, over the next three trading days to close at $57.50 on October 22, 2024.

Finally, on October 31, 2024, the Company stated that it would have to “scale down our whiskey production” and that “further inventory tightening is a headwind in the near term.” On this news, MGPI’s stock price declined by another $8.27, or nearly 15%, to a closing price of $48.04 on October 31, 2024.