Overview

A class action lawsuit has been filed against MPG Ingredients, Inc. (“MGPI” or the “Company”) (NASDAQ: MGPI) and certain of the Company’s senior executive officers alleging violations of the federal securities laws.  The MGPI class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired shares of the common stock of MGPI between May 4, 2023, through October 30, 2024, both dates inclusive (the “Class Period”).  Investors have until February 14, 2025, to seek an appointment as lead plaintiff in the MGPI class action lawsuit.

MGPI is a company that manufactures, distills, and sells alcoholic beverages such as tequila, bourbon, rye, and other whiskeys, as well as grain-neutral spirits such as vodka and gin.  The COVID-19 pandemic drastically changed the alcohol consumption habits of consumers around the globe.  In the United States, studies have shown that there was a considerable uptick in alcohol consumption in 2020, as shown by a significant increase in retail sales.  These studies also suggest that during the pandemic, about 25% of people consumed more alcohol than did prior to the pandemic, and that sales of hard liquor (i.e., spirits), accounted for most of the increase.

The MGPI class action alleges that MGPI reaped the benefits of this phenomenon, ramping up its production and reporting favorable results during earnings call after earnings call.  However, this demand for liquor began to taper in 2023.  While the investing public was aware that an industry-wide destocking in spirits had begun to take place, Defendants assured its skeptical investors that the Company was ahead of the game, having already sold much of, or “cycled through,” its inventory.  Defendants also stated that MGPI’s exposure to overstocking was smaller than its peers’ exposures, and that since the Company’s inventory was stable, destocking was “not a core issue,” because Defendants had properly monitored and managed the situation.

Throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose adverse material facts about the Company’s business, operations, and prospects.  Specifically, Defendants repeatedly touted a strong demand and “normal” inventory levels in brown goods (i.e., American whiskies and tequila), when in fact there had been a slowdown in consumption and oversupply in their products.  Worse, Defendants had assured investors that they were positioned differently than their competitors, and that this was a non-issue, because the Company had already taken steps to mitigate the risk, when in fact it had not.

As a result of Defendants’ wrongful acts and omissions, and the sharp decline in the market value of the Company’s common stock, Plaintiff and other class members have suffered significant losses and damages.

*          *          *

If you purchased or otherwise acquired shares of the common stock of MGPI between May 4, 2023, through October 30, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the MGPI class action lawsuit is February 14, 2025.