NEW YORK, April 10, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Kansas on behalf of those who acquired MGP Ingredients, Inc. (“MGP” or the “Company”) (MGPI) securities during the period from February 27, 2019 through February 25, 2020. Investors have until April 28, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) MGP had not completed any significant sales of its 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) as a consequence, MGP’s full-year 2019 financial guidance lacked a reasonable basis and was materially misleading.
On May 1, 2019, the Company announced its 1Q19 financial results, including “lighter” than consensus results due to “lower volumes” in sales of aged whiskey. On this news, the price of MGP stock fell $20.08, or 22.8%, to close at $67.79 per share on May 1, 2019.
On July 31, 2019, the Company announced weak 2Q19 financial results, again due to poor sales of aged whiskey. On this news, the price of MGP stock fell $17.15, or 25.5%, to close at $49.99 per share on July 31, 2019.
On October 31, 2019, the Company again announced disappointing 3Q19 financial results due to poor whiskey sales. On this news, the price of MGP stock fell $5.60, or 11.5%, to close at $42.89 per share on October 31, 2019.
On January 17, 2020, the Company pre-announced its preliminary FY19 results, significantly missing the guidance that the Company had reiterated with just two months to go in FY19. CEO Augustus C. Griffin finally acknowledged that the disappointing results were the product of MGP’s inability to transact on its aged whiskey inventory as they had represented to investors. On this news, the price of MGP stock fell $14.60, or 27.6%, to close at $38.18 per share on January 17, 2020.
Finally, on February 26, 2020, the Company announced its finalized FY19 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. On this news, the price of MGP stock fell $3.38, or 10.6%, to close at $28.42 per share on February 26, 2020.
If you acquired MGP securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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