| COMPANY |
MGP Ingredients, Inc. |
| COURT |
United States District Court for the District of Kansas
|
| CASE NUMBER |
24-cv-02153 |
| JUDGE |
The Honorable John W. Broomes |
| CLASS PERIOD |
May 4, 2023, through October 30, 2024 |
| SECURITY TYPE |
Common Stock |
Case Background:
The Class Period begins on May 4, 2023 when, before the markets opened, MGPI announced its financial results for its first fiscal quarter for 2023, which beat analyst estimates. In its Form 8-K filed with the SEC on the same date, MGPI stated that “[s]ales of brown goods grew 10% from the prior year period to record levels, driven by strong new distillate customer commitments, higher pricing across all brown goods, and stronger than expected customer demand for spot purchases. Within our Branded Spirits segment, revenue grew 2% and we recently realigned our national distribution capabilities with Republic National Distributing Company (“RNDC”) toward the end of the quarter. We believe this realignment with RNDC, as well as continued investment in our premium plus family of spirits brands, continues to position us well for incremental growth and margin expansion opportunities going forward.” Likewise, during the earnings conference call that took place the same day, MGPI highlighted the impressive growth the company was experiencing and reiterated its optimism with regard to demand for the company’s products, including that “demand for our products in each of our three segments remains strong and we believe our business continues to be well positioned.”
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there had been a slowdown in consumption and oversupply in their products; and (2) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
Defendants filed the Motion to Dismiss the Consolidated Class Action Complaint on July 15, 2025. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.