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MGP INGREDIENTS, INC SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES CLICK HERE TO VIEW THE FIRM RÉSUMÉ OF BERNSTEIN LIEBHARD LLP.

MGP Ingredients, Inc.

Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of  MGP Ingredients, Inc. (“MGP” or the “Company”) (NASDAQ: MGP) between February 27, 2019, and February 25, 2020.

If you purchased MGP Ingredients, Inc. securities and/or would like to discuss your legal rights and options please click “Join Class Action.” 

New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of  MGP Ingredients, Inc. (“MGP” or the “Company”) (NASDAQ: MGPI) between February 27, 2019, and February 25, 2020 (the “Class Period”). The lawsuit filed in the United States District Court for the District of Kansas alleges violations of the Securities Exchange Act of 1934.

The Complaint 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: (i) MGP had not completed any significant sales of its four-year-old aged-whiskey inventory; (ii) the Company had been unable to sell its aged whiskey at the price premium represented to investors; (iii) 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 (iv) in light of the foregoing, the Company’s FY19 financial forecast lacked a reasonable basis and was materially misleading.

On May 1, 2019, the Company announced its first quarter 2019 financial results including “lighter” than consensus results due to “lower volumes” ins ales of aged whiskey.  Defendants attributed the disappointing results to order timing and assured investors that the orders would be fulfilled during the second quarter of 2019.  On this news, the price of MGP stock declined from a close of $87.87 per share on April 30, 2019, to a close of $67.79 per share on May 1, 2019.

Then on July 31, 2019, the Company announced weak results for the second quarter 2019 financial results, again due to poor sales of aged whiskey. Following the disclosure of these results and the reduction n MGP’s 2019 guidance the Company’s stock price fell from $67.14 to $49.99.

On October 31, 2019, the Company issued a press release announcing that its financial results for 3Q19 were again below street expectations.  The Company stated that consolidated sales had decreased 4.6% to $90.7 million, consolidated gross profit had decreased 4.1% to $18.8 million, consolidated operating income had decreased 3.4% to $11.6 million, and EPS had decreased to $0.48.

On January 17, 2020, the Company pre-announced its preliminary fiscal year 2019 results, significantly missing the guidance the defendants had just reiterated. On this news, the price of MGP stock fell more than 27%, from a close of $52.78 per share on January 16, 2020 to a close of $38.18 per share on January 17, 2020.

On February 26, 2020, the Company announced its finalized fiscal year 2019 financial results, confirming its earlier pre-announcement that it had fallen “significantly short of… guidance” due to its failure to sell aged whiskey during the fourth quarter of 2019. Griffin revealed that aged whiskey sales had declined year over year and that the Company had failed to secure the contracts it had previously highlighted to investors.  On this news, the price of MGP stock declined from a close of $31.80 per share on February 25, 2020 to a close of $28.42 per share on February 26, 2020.

If you wish to serve as lead plaintiff, you must move the Court no later than April 28, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2020 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information

Matthew E. Guarnero
Bernstein Liebhard LLP

(877) 779-1414
MGuarnero@bernlieb.com