New York, New York–(Newsfile Corp. – December 24, 2024) – The law firm of Kirby (NYSE:) McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York. York on behalf of those who received MGB components (NASDAQ:), Inc. (“MGP Components” or the “Company”) (NASDAQ: MGPI) securities during the period from May 4, 2023 through October 30, 2024 (the “Class Period”). Investors have until February 14, 2025 to submit a request to the court to be appointed as lead plaintiff in the lawsuit.
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On February 22, 2024, the company reported its financial results for the fourth quarter of fiscal 2023 and provided guidance for fiscal 2024. While 2023 results beat expectations, 2024 revenue forecasts were 4.9% lower than expected. During the earnings call, the company acknowledged industry reports of continued “inventory cannibalization at the wholesale level” in 2024 and emphasized its efforts to manage wholesalers' inventory. CEO David Bratcher also noted that more than 90% of the company's 2024 new whiskey sales have already closed, while only about 50% of its old and vintage whiskey sales are guaranteed. This shows that the company is shifting its focus more towards selling newer whiskies. Despite assurances that demand remains strong and the company is positioned for growth, the market reaction has been negative. On this news, the stock price of MGP Components fell $13.65, or approximately 15%, from $91.83 per share on February 21, 2024, to close at $78.14 per share on February 22, 2024.
Then, on October 17, 2024, MGB Ingredients reported preliminary third-quarter results, revealing a 14% year-over-year sales decline and lowering its 2024 financial guidance. The company cited rising industry-wide whiskey inventories and slowing demand for brown goods , especially among handicraft customers. Analysts criticized the announcement as “astonishing” and a “material surprise”, with concerns about credibility and visibility into future performance. On this news, MGP Components' stock price fell $24.07 per share, or approximately 30%, from $81.57 on October 17, 2024, to close at $57.50 on October 21, 2024.
Furthermore, on October 31, 2024, MGB Ingredients disclosed additional challenges, acknowledging that US light whiskey trends and excess inventories will require production curtailment. During the earnings call, executives acknowledged falling demand, falling prices and diminished visibility. On this news, the stock price fell $8.27 per share, or approximately 15%, from $56.31 on October 30, 2024, to close at $48.04 on October 31, 2024.
The Complaint alleges that throughout the Class Period, MGP made materially false and/or misleading statements and/or failed to disclose a slowdown in consumption and increased supply in its brown goods (i.e., U.S. whiskey and tequila products).
If you purchased or acquired MGP Ingredients securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP via email at questions@kmllp.com Or fill out the form below to discuss your rights or interests with respect to these matters at no cost to you.
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Kirby McInerney LLP is a New York-based law firm focusing on securities, antitrust, whistleblower, and consumer litigation. The Company's efforts on behalf of shareholders in securities class actions have resulted in recoveries totaling billions of dollars. Additional information about the company can be found on the Kirby McInerney LLP website.
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