Shareholder Alert: Bernstein Litowitz Berger & Grossmann Announces the Filing of Securities Class Action Lawsuit against MGP Ingredients, Inc. and Certain of Its Senior Executives
NEW YORK, April 6, 2020 /PRNewswire/ -- Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") filed a class action lawsuit for violations of the federal securities laws against MGP Ingredients, Inc. ("MGP" or the "Company"), and certain of the Company's former and current senior executives (collectively, "Defendants"), on behalf of investors in MGP common stock between August 2, 2018 and February 25, 2020 (the "Class Period"). The case was filed in the U.S. District Court for the District of Kansas.
Based in Atchison, Kansas, MGP is a producer and supplier of distilled spirits and food ingredient products. The majority of its business is the production of distilled spirits including aged-whiskey, un-aged rye whiskey, distilled gin, bourbon, and industrial alcohol. The claims against MGP arise from misstatements regarding the demand for MGP's aged-whiskey and its ability to sell off its large inventory. After spending approximately $70 million to embark on a four-year process to produce and sell aged whiskey, MGP assured investors that, thanks to its "far superior sales force," and its clear "visibility" into its customers' demands, MGP would have no trouble selling its entire inventory of aged whiskey for three to four times its cost. Moreover, by the beginning of 2019, MGP claimed that the Company had already begun securing orders for its whiskey amidst this strong demand. In reality, however, MGP was struggling to find customers to buy its aged whiskey, and at no point had any meaningful visibility into the demand for this product.
The Company shocked investors on January 17, 2020, when MGP drastically reduced its 2019 sales and earnings per share guidance. Significantly, MGP CEO Augustus Griffin admitted that MGP did not in fact have as strong of a "line of sight we believed we had to these aged sales" and that MGP is "currently conducting additional analysis to better understand the aged whiskey market." Then, approximately three weeks later, MGP's CEO unexpectedly "stepped down" from his position. As a result of these disclosures, MGP shares plummeted in value, causing MGP investors to suffer significant losses and damages.
The complaint is based on an extensive investigation and a careful evaluation of the merits of this case. A copy of the complaint is available on BLB&G's website by clicking here. BLB&G filed this action on behalf of the City of Miami Fire Fighters' and Police Officers' Retirement Trust, and the case is captioned City of Miami Fire Fighters' & Police Officers' Ret. Trust v. MGP Ingredients, Inc., No. 20-cv-2180 (D. Kan.). This case is related to a previously filed securities class action pending against MGP: Corbezzolo v. MGP Ingredients, Inc., No. 2:20-cv-02090 (D. Kan.).
Pursuant to the February 28, 2020 notice published in connection with the Corbezzolo action, under the Private Securities Litigation Reform Act of 1995, investors who purchased MGP common stock during the Class Period may, no later than April 28, 2020, seek to be appointed as Lead Plaintiff for the Class.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Michael D. Blatchley of BLB&G at 212-554-1281, or via e-mail at [email protected].
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $33 billion on behalf of defrauded investors. More information about the firm can be found online at www.blbglaw.com.
CONTACT:
Michael D. Blatchley
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1281
[email protected]
SOURCE Bernstein Litowitz Berger & Grossmann LLP
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