Grant & Eisenhofer Files Class Action Lawsuit Against MGP Ingredients, Inc. on Behalf of Pension Fund By Investing.com

NEW YORK–( BUSINESS WIRE )–Institutional investor Operating Engineers Construction Industry Miscellaneous Pension Fund today filed a class action lawsuit against MGP components Inc. (NASDAQ:) (MGPI or the Company), David Colon, David S. Bratcher and Brandon M. Gall, alleging that they defrauded investors by making false and misleading statements about MGPI’s business and financial performance, sales of hard liquor and overstocking of products.

The lawsuit, brought in federal court for the United States District Court for the Southern District of New York, was filed by leading investor law firm Grant & Eisenhofer PA.

The claim is being made on behalf of all persons or entities who have purchased or acquired MGPI common stock From May 4, 2023 to October 30, 2024 inclusive (Class): The action is inscribed Operating Engineers Construction Industry Miscellaneous Pension Fund v. MGP Ingredients, Inc., David Colo, David S. Bratcher and Brandon M. GallNo. 1:24-cv-09685 (SDNY).

The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, MGPI is a producer of hard liquors such as tequila, bourbon, rye, whiskey, vodka, and gin sells beverages under its own brands as well as to other alcohol distributors and brands During the period, sales of hard liquors such as those produced and sold by MGPI increased dramatically as a result of COVID-19 falsely assured investors that its forecasts and statements explained the industry slowdown and that it was well positioned to avoid stockpiling The company also falsely claimed that its projected sales took these industry trends into account.

So the market was shocked when MGPI announced on October 17, 2024 that the slowdown in demand and excess inventory would disrupt sales. This revelation led to a 29.5% drop in the Company’s stock. Then, less than two weeks later, on October 31, 2024 , the defendants revealed that its excess inventory would have a greater impact than previously reported The company’s stock fell another 14.7% to close at $49.04 per share on October 31, 2024. In total, MGPI’s stock price fell about 50% as a result of these two disclosures, wiping out a hundred millions of dollars in market capitalization and harming investors;

Investors who acquired or acquired MGPI common stock during the Class Period are members of this proposed class and may be appointed as the lead plaintiff as a court-appointed representative for the Class pursuant to the relevant provisions of the Private Securities Litigation Reform Act of 1995. PSLRA). See: 15 USC Section 78u-4(a)(2)(A)(iv): If you wish to act as the lead plaintiff, You must move to court no later than February 14, 2025which is the lead plaintiff’s deadline set by the publication of this notice on December 16, 2024. You do not need to seek a lead plaintiff to participate in the possible recovery.You may also retain an attorney of your choice to represent you in this action.

If you would like to discuss this action or have any questions about this notice or your rights, please contact Caitlin M. Contact Moyna at Grant & Eisenhofer at 646-722-8513 or by email at cmoyna@gelaw.com.More information is also available at gelaw.com.

View the source version at businesswire.com. https://www.businesswire.com/news/home/20241216321169/hy/

Grant and Eisenhofer
Caitlin M. Moina
646-722-8513
cmoyna@gelaw.com:

Source: Grant & Eisenhofer PA