New York, New York--(Newsfile Corp. - April 16, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MGP Ingredients, Inc. (NASDAQ: MGPI) ("MGP" or the "Company") of the April 28, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in MGP stock or options between February 27, 2019 and February 25, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/MGPI. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of Kansas on behalf of all those who purchased MGP common stock between February 27, 2019 and February 25, 2020 (the "Class Period"). The case, Corbezzolo v. MGP Ingredients, Inc. et al., No. 2:20-cv-02090 was filed on February 28, 2020 and has been assigned to Judge Daniel D. Crabtree.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) MGP had not completed any significant sales of its four-year-old aged whiskey inventory; (2) the Company had been unable to sell its aged whiskey at the price premium represented to investors; (3) 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) in light of the foregoing, the Company's FY 2019 financial forecast lacked a reasonable basis and was materially misleading.
Specifically, on May 1, 2019, defendants announced MGP's first quarter 2019 financial results, including "lighter" than consensus results due to "lower volumes" in sales of aged whiskey, but claimed that MGP was experiencing favorable demand and pricing trends and "confidently confirm[ed]" the Company's guidance for the remainder of the year.
On this news, the Company's stock price fell from $87.87 per share on April 30, 2019 to $67.79 per share on May 1, 2019: a $20.08 or 22.85% drop.
Then, on July 31, 2019, defendants announced weak second quarter 2019 financial results, again due to poor sales of aged whiskey. In addition, defendants affirmed MGP's net sales growth guidance, but revised downward their guidance for operating income growth.
On this news, the Company's stock price fell from $67.14 per share on July 30, 2019 to $49.99 per share on July 31, 2019: a $17.15 or 25.54% drop.
Next, on October 31, 2019, defendants announced disappointing third quarter 2019 financial results, again due to poor whiskey sales, and blamed the failure to transact aged whiskey sales on customer delays and "funding issues," but reiterated that MGP remained on track to achieve its revised full-year 2019 guidance.
On this news, the Company's stock price fell from $48.49 per share on October 30, 2019 to $42.89 per share on October 31, 2019: a $5.60 or 11.55% drop.
Then, on January 17, 2020, the Company announced its preliminary full-year 2019 financial results, which significantly missed the guidance defendants had reiterated with just two months to go in the year.
On this news, the Company's stock price fell from $52.78 per share on January 16, 2020 to $38.18 per share on January 17, 2020: a $14.60 or 27.66% drop.
Finally, on February 26, 2020, the Company announced its finalized full-year 2019 financial results, confirming its previously announced preliminary results, including that it had fallen "significantly short of . . . guidance" due to its failure to sell aged whiskey during the fourth quarter of 2019. The Company also revealed that aged whiskey sales had declined year over year and that it had failed to secure the contracts it had previously highlighted to investors.
On this news, the Company's stock price fell from $31.80 per share on February 25, 2020 to $28.42 per share on February 26, 2020: a $3.38 or 10.63% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding MGP's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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