BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who 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.
Investors suffering losses on their MGP investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
If you purchased MGP common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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