Grant & Eisenhofer Files Class Action Lawsuit Against MGP Ingredients, Inc. on behalf of the Pension Fund By Investing.com
NEW YORK–(BUSINESS WIRE)–Institutional investor Operating Engineers Construction Industry Miscellaneous Pension Fund filed a class action lawsuit today against it Ingredients of MGP Inc. (NASDAQ:) (MGPI or the Company), David Colo, David S. Bratcher, and Brandon M. Gall, alleging that they defrauded investors by making false and misleading statements about the state of MGPI’s business and financial results in relation to selling spirits and products overselling.
The lawsuit, brought in federal court in the United States District Court for the Southern District of New York, was filed by the leading law firm Grant & Eisenhofer PA.
The action is brought on behalf of all persons or entities that purchased or received common stock of MGPI between May 4, 2023 to October 30, 2024, inclusive (Class Period). The action has captions Operating Engineers Construction Industry Miscellaneous Pension Fund v. MGP Ingredients, Inc., David Colo, David S. Bratcher, and Brandon M. GallNo. 1:24-cv-09685 (SDNY).
The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, MGPI is a producer of hard liquor such as tequila, bourbon, rye, whiskey, vodka, and gin. MGPI sells the spirits it produces under its own brands and to other distributors of alcohol and products. Before the Class Period, sales of hard liquor, such as those produced and sold by MGPI, increased significantly after COVID-19. However, with the end of the lockdown, sales of hard liquor declined in the liquor industry, and the inventory backlog began to increase. During the Class Period, MGPI lied to investors that speculation and statements caused the industry to decline and that it was well positioned to avoid stockpiling. The company also falsely stated that its projected sales took these industry trends into account.
So the market was shocked when the MGPI announced on October 17, 2024, that a drop in demand and an oversupply would undermine sales. The revelation caused the Company’s stock to drop 29.5%. Then, less than two weeks later, on October 31, 2024, the 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 close at $49.04 per share on October 31, 2024. In total, MGPI’s stock price fell by nearly 50% in these two disclosures, removing hundreds of millions of dollars from the market capitalization and damaging investors.
Investors who purchased or acquired MGPI common stock during the Class Period are members of this proposed Class and may seek appointment as the lead plaintiff, a court-appointed Class representative, subject to the applicable provisions of the Private Securities Act. Law Reform Act of 1995 (PSLRA). Look 15 USC Section 78u-4(a)(2)(A)(i)-(iv). If you wish to work as a lead claimant, you must remove the Court no later than February 14, 2025which is the lead plaintiff deadline established by publication of this notice on December 16, 2024. You do not need to want to be a lead plaintiff to participate in any potential recovery. You can also keep the tips you have chosen to represent you in this process.
If you wish to discuss this action or have questions about this notice or your rights, please contact Caitlin M. Moyna at Grant & Eisenhofer at 646-722-8513, or by email at cmoyna@gelaw.com. You can also find more information at gelaw.com.
View the source version on businesswire.com:
Grant & Eisenhofer
Caitlin M. Moyna
646-722-8513
cmoyna@gelaw.com
Source: Grant & Eisenhofer PA
