#United States #New York #Securities Law #MGP Ingredients #Faruqi

Investigation of MGP Ingredients by Faruqi & Faruqi, LLP

Overview
Faruqi & Faruqi, LLP, a prominent national securities law firm, has started an investigation into possible claims against MGP Ingredients, Inc., also known as MGPI. This initiative is primarily aimed at shareholders who have experienced significant losses exceeding $100,000 due to their investments in MGPI between May 4, 2023, and October 30, 2024. This notification also serves to remind investors of a critical deadline on February 14, 2025, to apply for the role of lead plaintiff in a federal securities class action lawsuit filed against the company.

Background
The firm has stated that the complaints allege wrongdoing by MGP Ingredients and its executives concerning federal securities laws. Specifically, it is claimed that the company made misleading statements regarding its market position and failed to disclose its actual handling of industry slowdowns which affected its inventory management. Moreover, the assertion that projected sales adequately accounted for ongoing downward trends in demand was also called into question.

On October 17, 2024, MGP Ingredients publicly confirmed that it was facing challenges due to soft market demand and elevated inventory levels that were negatively impacting its sales volume. Following this announcement, MGPI's stock suffered a staggering drop of $24.07 per share, marking a 29.5% decline from a prior closing price of $81.57, down to $57.50, just three days later.

On October 31, 2024, the situation worsened as executives disclosed that excess inventory would likely have a more severe impact on sales in 2025 than previously forecasted, prompting drastic operational cutbacks. This revelation led to another significant stock price decrease, where MGPI shares fell another $8.27, or 14.7%, closing at $48.08 per share.

Investors' Response
For investors who suffered financial setbacks exceeding $100,000 during this period, Faruqi & Faruqi have provided two direct contact numbers to discuss potential legal actions or claims. Those interested can reach out directly to Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310). The firm encourages anyone with relevant information about MGP Ingredients’ activities to come forward, particularly former employees, whistleblowers, and shareholders.

The law firm aims to ensure that no investor feels uncertain about their rights. While serving as a lead plaintiff can potentially provide a greater role in the proceedings, it is emphasized that choosing to remain an absent class member will not diminish any recovery they may be entitled to in the event of a successful outcome.

Faruqi & Faruqi's Commitment
Faruqi & Faruqi, LLP has built a solid reputation within the realm of securities law since its founding in 1995, recovering hundreds of millions of dollars for investors across various sectors. Its offices, strategically located across New York, Pennsylvania, California, and Georgia, are staffed by seasoned professionals adept at navigating complex financial litigation.

For continuous updates on this investigation and further announcements regarding MGP Ingredients, interested parties are encouraged to visit their dedicated webpage on the firm’s site or follow them on social media platforms like LinkedIn, X, and Facebook.

Conclusion
This investigation by Faruqi & Faruqi, LLP is crucial for shareholders affected by MGP Ingredients’ alleged mismanagement and misleading communications. Stakeholders are strongly urged to explore their rights and potential claims before the approaching deadlines. The proactive stance of Faruqi & Faruqi illustrates a broader commitment to ensuring corporate accountability and diligence in securities law matters.