SAN FRANCISCO, Oct. 26, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges MGP Ingredients, Inc. ( MGPI) investors who suffered significant losses to submit your losses now. The firm is investigating possible securities law violations.
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MGP Ingredients, Inc. ( MGPI) Investigation:
The investigation focuses on MGP Ingredients’ assurances regarding the purported benefits of its Luxco, Inc. acquisition, which closed on April 1, 2021.
On Oct. 12, 2022 MGP Ingredients’ assurances came into question, when analyst Spruce Point Capital published a scathing report entitled “Over a Barrel.” According to Spruce Point : (1) “with the benefit of five subsequent reporting quarters, Spruce Point believes the Luxco merger has been an abysmal bust;” (2) “Luxco sales were declining between January and April 1st when the deal was in its closing period;” (3) “new reporting disclosures now definitively show that MGPI’s legacy branded spirit sales were a bust;” (4) “[o]ur price checks indicate that many of Luxco’s branded spirits are being sold 5% to 50% below suggested retail price;” and (5) “MGPI changed [SEC disclosure] language to say that inventories increased in Q1 2021 when in fact the reported results show a decrease” and “[t]his leads us to believe that MGPI is signaling a financial misstatement tied to inventory.”
In response, the price of MGP Ingredients shares closed over 5% lower on Oct. 12, wiping out more than $100 million of shareholder value.
“We’re focused on investors’ losses and whether the company misled investors about its legacy business and Luxco’s anticipated and actual post-merger contributions to it,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in MGP Ingredients and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding MGP Ingredients should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
