MGP Ingredients Faces Investigation Over Potential Securities Violations

The Law Offices of Howard G. Smith has initiated an investigation for MGP Ingredients, Inc. (“MGP” or the “Company”) MGPI investors. This inquiry is focused on the Company’s potential violations of federal securities laws.

Quarterly Performance Falls Short, Driving Stock Down

On October 17, 2024, MGP disclosed that its sales for the third quarter ending September 30, 2024, were projected to drop 24% compared to the same period in 2023. Additionally, the Company expected adjusted net income to decrease by 5% and adjusted EBITDA to fall by 9%. MGP also noted that its future financial results are now anticipated to be lower than previously communicated on August 1, 2024, during its second quarter conference call.

CEO Comments on Challenges Faced

David Bratcher, CEO and president of MGP, attributed these disappointing results to “elevated industry-wide whiskey inventories,” which he said are exerting unexpected pressure on the Company’s brown goods business. He mentioned that this situation has had a more significant impact on MGP’s smaller, craft customer base.

Stock Price Reaction and Investor Impact

Following the announcement, MGP’s stock price plummeted by $19.71, or 24.16%, closing at $61.86 per share on October 18, 2024. This sharp decline has raised concerns among investors.

Contact Information for Investors

Investors who purchased MGP securities or have information regarding these claims, as well as those seeking further details about their rights, are encouraged to reach out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith. He can be contacted at 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 via telephone at (215) 638-4847 or by email at howardsmith@howardsmithlaw.com. More information can also be found on their website at www.howardsmithlaw.com.

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