Lead plaintiffs are sought in a class-action lawsuit against MGP Ingredients that alleges false and/or misleading statements. The statements allegedly were made between the investment period of May 4, 2023 and October 30, 2024.

Potential lead plaintiffs must come forward no later than Feb. 14, 2025, according to law firms who now seek lead plaintiffs in the case.

According to Rosen Law Firm, per the suit, MGP Ingredients “failed to disclose material adverse facts about MGPI’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.”

In early November, MGP announced it would scale back whiskey production in 2025. 

In a financial report, CEO and President David Bratcher cited declining segment sales during Q03, announcing the planned scale-back in the process.

“In response to the softening American whiskey category trends and elevated industry-wide barrel inventories,” Bratcher said in a statement at the time, “in 2025 we plan to further lower our net aging whiskey put away, scale down our whiskey production, and optimize our cost structure to mitigate lower production volumes.” 

The class action lawsuit asserts that MGP Ingredients had assured investors that they were positioned differently than their competitors, and that this was a non-issue, because MGPI had already taken steps to mitigate the risk, when in fact it had not. 

“When the true details entered the market, the lawsuit claims that investors suffered damages,” Rosen Law stated.

Other firms seeking lead plaintiffs include Gross Law Firm, Schall Law Firm, Levi & Korsinksky and Bronstein, Gewirtz & Grossman.

Read more: MGP Ingredients Hires New VP of Investor Relations