Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether the leadership of MGP Ingredients, Inc. (“MGP Ingredients”) (NASDAQ: MGPI) breached their fiduciary duties to MGP Ingredients and its shareholders.
Scott+Scott is investigating whether members of MGP Ingredients’ board of directors (the “Board”) made, or caused MGP Ingredients to make, false and/or misleading statements, as well as failed to disclose material adverse facts, about MGP Ingredients’ business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the Board failed to disclose material information, including whether: (1) there had been a slowdown in consumption and oversupply in MGP Ingredients’ products; (2) MGP Ingredients was not in fact positioned differently than its competition and had not taken steps to mitigate its risk; and (3) as a result, statements about MGP Ingredients’ business, operations, and prospects lacked a reasonable basis.
Between October 17, 2024 and October 31, 2024, MGP Ingredients made statements to the public disclosing the above information. On this news, the stock price fell nearly 50%.