#United States #San Diego #Class Action #Robbins LLP #MGP Ingredients

Class Action Lawsuit Filed Against MGP Ingredients, Inc.

A recent announcement from Robbins LLP reveals that a class action lawsuit has been initiated against MGP Ingredients, Inc. (NASDAQ: MGPI) by a shareholder on behalf of all investors who purchased shares between May 4, 2023, and October 30, 2024. MGP Ingredients is well-known for distilling and manufacturing various alcoholic beverages including tequila, bourbon, and gin, but it now finds itself in hot water as allegations of misleading statements regarding product demand and inventory levels come to light.

The Allegations

The launched complaint claims that MGP Ingredients' management assured investors of healthy demand for their products during the class period, labeling inventory levels in the brown goods sector as 'normal.' This, according to the allegations, was far from the truth. Evidence suggests that, in reality, the company faced a significant decline in consumption and an oversupply of goods.

Defendants explicitly indicated that MGP was positioned differently from its competitors, claiming that they had taken steps to mitigate inventory risks. However, the complaint argues that these assertions were unfounded, and no such measures had been implemented.

The turning point arrived on October 17, 2024, when MGP Ingredients acknowledged that weak consumer demand and excessive inventory had indeed impaired their sales. This revelation led to a dramatic drop in share price, which fell by 29.5%, equating to a loss of $24.07 per share. This major decline forced MGP’s stock to close at $57.50 on October 22, 2024.

Just a few days later, on October 31, MGP disclosed that the impact of surplus inventory would negatively affect sales in 2025 even more than previously assumed, prompting the company to downscale operations to manage costs. Following this announcement, the stock price plummeted another $8.27 per share, bringing it down to $48.08, a 14.7% decrease.

What’s Next for Investors?

Investors caught up in this predicament now have the chance to participate in the class action against MGP Ingredients. Those shareholders looking to act as lead plaintiffs must submit their application to the court by February 14, 2025. The lead plaintiff represents other class members in guiding the litigation process. However, being part of the lawsuit is not a prerequisite to recuperating losses, as investors can opt to remain passive class members without taking any action.

Robbins LLP assures potential participants that all representation will be conducted on a contingency fee basis—meaning shareholders will not have to pay any fees or expenses unless there is a successful recovery of funds.

About Robbins LLP

Robbins LLP distinguishes itself from numerous other firms by actually engaging in the litigation of securities class actions. The firm has earned a reputation as a leader in shareholder rights, committed to helping investors reclaim their losses and improve company governance since its establishment in 2002. Over the years, Robbins has succeeded in securing over $1 billion for their clients.

For shareholders eager to stay informed about the lawsuit outcome or any relevant developments in corporate governance, signing up for Robbins LLP’s Stock Watch service will provide timely alerts. This is especially important for those wanting to be updated in the event of a settlement or other crucial actions related to the case.

Potential claimants are encouraged to reach out directly to Robbins LLP to learn more about their rights as investors and the next steps they should take. They can submit inquiries through the firm's website or contact them directly at the provided phone number.

In conclusion, the implications of this lawsuit may extend beyond MGP Ingredients, contributing to the ongoing discourse about corporate accountability and transparency in the capital markets.