MGP Ingredients(MGPI) GlobeNewswire News Room·2025-01-07 02:31Class Action Lawsuit Against MGP Ingredients, Inc - A class action lawsuit has been filed on behalf of investors who purchased or acquired MGP Ingredients, Inc (MGPI) common stock between May 4, 2023, and October 30, 2024 [1] - MGPI is a company that manufactures, distills, and sells alcoholic beverages including tequila, bourbon, rye, and other whiskeys, as well as grain-neutral spirits like vodka and gin [1] Allegations of Misleading Investors - The complaint alleges that MGPI misled investors regarding demand and inventory levels for its brown goods (American whiskies and tequila) [2] - Defendants repeatedly claimed strong demand and "normal" inventory levels, while in reality, there was a slowdown in consumption and oversupply [2] - MGPI assured investors that they were positioned differently than competitors and had taken steps to mitigate risks, which was not true [2] Impact on Stock Price - On October 17, 2024, MGPI admitted that soft demand and high inventories were undermining sales, leading to a 29.5% decline in share price from 57.50 over three trading days [3] - On October 31, 2024, MGPI further confessed that excess inventories would have an even greater impact on 2025 sales, causing the stock price to drop another 14.7% to 1 billion for shareholders since its inception in 2002 [6]