NEW YORK, March 9, 2020 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of MGP Ingredients, Inc. ("MGP" or the "Company") (NASDAQ: MGPI). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether MGP and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 1, 2019, MGP announced its financial results for the first quarter of 2019, including "lighter" than consensus results due to "lower volumes" in sales of aged whiskey. The Company attributed the disappointing results to order timing and assured investors that orders would be fulfilled during the second quarter of 2019. On this news, MGP's stock price fell $20.08 per share, or 22.85%, to close at $67.79 per share on May 1, 2019.
On July 31, 2019, MGP announced weak financial results for the second quarter of 2019, again due to poor sales of aged whiskey, and reduced guidance for operating income growth to 10%-20%, down from 15%-20%. On this news, MGP's stock price fell $17.15 per share, or 25.54%, to close at $49.99 per share on July 31, 2019. On October 31, 2019, MGP announced disappointing financial results for the third quarter of 2019, once again citing poor sales of aged whiskey, which the Company blamed on customer delays and "funding issues." On this news, MGP's stock price fell $5.60 per share, or 11.55%, to close at $42.89 per share on October 31, 2019.
On January 17, 2020, MGP pre-announced its preliminary financial results for fiscal year 2019, which significantly missed the guidance that the Company had recently reiterated. MGP experienced a net sales decline of 4% year-over-year, rather than growth in the mid-single digit percentage range, and an operating income decline of 9% year-over-year, rather than the 10%-20% growth represented to investors. MGP acknowledged that the disappointing results were the product of its inability to transact on the Company's aged whiskey inventory as it had previously represented to investors. On this news, MGP's stock price fell $14.60 per share, or 27.66%, to close at $38.18 per share on January 17, 2020.
On February 11, 2020, MGP announced the departure of August C. Griffin as the Company's Chief Executive Officer. Then, on February 26, 2020, MGP announced its finalized financial results for fiscal year 2019, confirming its earlier pre-announcement that it had fallen "significantly short of . . . guidance" due to its failure to sell aged whiskey during the fourth quarter of 2019. The Company revealed that aged whiskey sales had declined year over year and that the Company had failed to secure the contracts it had previously highlighted to investors. On this news, MGP's stock price fell $3.38 per share, or 10.63%, to close at $28.42 per share on February 26, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP