According to the Complaint, MGP Ingredients, Inc. manufactures alcoholic beverages and food ingredients. MGPI sells its own products under its own brand names as well as to manufacturers of other branded spirits. This lawsuit was filed against MGPI and three of its Officers.

Prior to the Class Period, sales of hard liquors, such as those produced and sold by MGPI, increased dramatically in the wake of COVID-19. However, as quarantines ended, sales of hard liquors slowed across the alcoholic beverage industry, and a backlog of inventory began to increase.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges 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. The Complaint further alleges that during the Class Period, Plaintiff and the Class acquired shares of MGPI common stock at artificially inflated prices due to Defendants’ allegedly false and misleading statements.

On February 28, 2025, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 24-CV-09685.

On March 24, 2025, the Court issued an Order transferring the case to the District of Kansas. The case transferred in on March 25 under Docket 25-CV-02153.

Lead Plaintiff filed a Consolidated Complaint on May 15, 2025. Defendants filed a Motion to Dismiss the Consolidated Complaint on July 15.