SAN DIEGO & ATCHISON, Kan.–(BUSINESS WIRE)–$MGPI #ClassAction–Shareholder rights law firm Robbins LLP announces that a purchaser of MGP Ingredients, Inc. (NASDAQ: MGPI) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 27, 2019 and February 25, 2020. MGP produces and supplies distilled spirits. If you suffered a loss as a result of MGP’s misconduct, click here.
MGP Ingredients, Inc. (MGPI) Accused of Misleading Shareholders
According to the complaint, on February 27, 2019, MGP announced its fiscal year 2018 financial results and its outlook for fiscal year 2019 (“FY19”). MGP touted it was on track for strong growth due to its new aged whiskey strategy, which it claimed it had already entered into contracts to sell. Then, on May 1, 2019, MGP revealed financial results that fell short of expectations, but assured investors the Company was “confident in the plan [MGP has] to sell [aged whiskey]” which will “make sure [MGP] deliver[s] [its] annual guidance.” Despite MGP’s confidence in its strategy, the Company continued to deliver weak financials throughout the relevant period, each time assuring sales of aged-whiskey were expected to soon increase and enable MGP to still achieve its FY19 guidance. Then, on February 26, 2020, MGP revealed its FY19 financial results had fallen significantly short of its guidance, citing declining aged whiskey sales and failure to secure the contracts it had previously highlighted. On this news, the stock price fell to $28.42 per share, representing a 67% decline from its class period high of $88.06 per share.
MGP Ingredients, Inc. (MGPI) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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