Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In MGP Ingredients, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MGP Ingredients, Inc. (“MGP” or the “Company”) (NASDAQ:MGP) of the April 28, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in MGP stock or options between August 2, 2018 and February 25, 2020 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the District of Kansas on behalf of all those who purchased MGP securities between August 2, 2018 and February 25, 2020 (the “Class Period”). The case, City of Miami Fire Fighters' and Police Officers' Retirement Trust v. MGP Ingredients, Inc. et al, No. 20-cv-02180 was filed on April 6, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements regarding the demand for MGP's aged-whiskey and its ability to sell off its large inventory. After spending approximately $70 million to embark on a four-year process to produce and sell aged whiskey, MGP assured investors that, thanks to its "far superior sales force," and its clear "visibility" into its customers' demands, MGP would have no trouble selling its entire inventory of aged whiskey for three to four times its cost. Moreover, by the beginning of 2019, MGP claimed that the Company had already begun securing orders for its whiskey amidst this strong demand. In reality, however, MGP was struggling to find customers to buy its aged whiskey, and at no point had any meaningful visibility into the demand for this product.
Specifically, on May 1, 2019, defendants announced MGP’s first quarter 2019 financial results, including “lighter” than consensus results due to “lower volumes” in sales of aged whiskey, but claimed that MGP was experiencing favorable demand and pricing trends and “confidently confirm[ed]” the Company’s guidance for the remainder of the year.
On this news, the Company's stock price fell from $87.87 per share on April 30, 2019 to $67.79 per share on May 1, 2019: a $20.08 or 22.85% drop.
Then, on July 31, 2019, defendants announced weak second quarter 2019 financial results, again due to poor sales of aged whiskey. In addition, defendants affirmed MGP’s net sales growth guidance, but revised downward their guidance for operating income growth.
On this news, the Company's stock price fell from $67.14 per share on July 30, 2019 to $49.99 per share on July 31, 2019: a $17.15 or 25.54% drop.
Next, on October 31, 2019, defendants announced disappointing third quarter 2019 financial results, again due to poor whiskey sales, and blamed the failure to transact aged whiskey sales on customer delays and “funding issues,” but reiterated that MGP remained on track to achieve its revised full-year 2019 guidance.
On this news, the Company's stock price fell from $48.49 per share on October 30, 2019 to $42.89 per share on October 31, 2019: a $5.60 or 11.55% drop.
Then, on January 17, 2020, the Company announced its preliminary full-year 2019 financial results, which significantly missed the guidance defendants had reiterated with just two months to go in the year.
On this news, the Company's stock price fell from $52.78 per share on January 16, 2020 to $38.18 per share on January 17, 2020: a $14.60 or 27.66% drop.
Finally, on February 26, 2020, the Company announced its finalized full-year 2019 financial results, confirming its previously announced preliminary results, including that it had fallen “significantly short of . . . guidance” due to its failure to sell aged whiskey during the fourth quarter of 2019. The Company also revealed that aged whiskey sales had declined year over year and that it had failed to secure the contracts it had previously highlighted to investors.
On this news, the Company's stock price fell from $31.80 per share on February 25, 2020 to $28.42 per share on February 26, 2020: a $3.38 or 10.63% drop.
MGP Ingredients, Inc. (MGPI)
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Filed on 03/02/2020
Lead Plaintiff Deadline 04/28/2020
685 Third Avenue 26th Floor
10017 New York, New York
Phone (212) 983-9330
Fax (212) 983-9331
Richard W. Gonnello firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331