Core Viewpoint - A class action lawsuit has been filed against The Scotts Miracle-Gro Company for violations of federal securities laws, impacting investors who purchased stock between November 3, 2021, and August 1, 2023 [1][4] Group 1: Lawsuit Details - The lawsuit alleges that Scotts Miracle-Gro made false or misleading statements and failed to disclose significant issues, including an oversupply of inventory that exceeded consumer demand [4] - Executives of Scotts Miracle-Gro are accused of pressuring retailers to purchase more inventory than they needed, leading to a saturation of the sales channel [4] Group 2: Investor Impact - Following the revelation of these issues, Scotts' common stock experienced a significant decline, resulting in financial injury to investors [2] - Investors who suffered losses exceeding $100,000 are encouraged to participate in the lawsuit [5] Group 3: Legal Representation - Lowey Dannenberg P.C. is representing the investors in this class action, highlighting their experience in prosecuting multi-million-dollar lawsuits and recovering billions for clients [6]

Core Viewpoint - The Scotts Miracle-Gro Company is facing a class action lawsuit due to allegations of misleading investors regarding its business prospects and financial performance during the class period from November 3, 2021, to August 1, 2023 [6][7]. Company Overview - Scotts Miracle-Gro produces a variety of lawn, garden, and agricultural products for both consumer and professional markets [6]. Allegations and Financial Performance - The complaint states that Scotts had an oversupply of inventory that exceeded consumer demand, leading to a scheme where sales personnel pressured retailers to purchase more inventory than needed [2]. - On August 2, 2023, Scotts announced its financial results for the third quarter of fiscal year 2023, revealing a 6% decline in quarterly sales and a 420 basis point drop in gross margins [7]. - The company amended its debt covenants, increasing the permitted debt-to-EBITDA ratio from 6.25 to 7.00 times [7]. - Scotts slashed its fiscal year EBITDA guidance by 25% and took a $20 million write-down for excess inventories driven by the pandemic [7]. - Following this announcement, Scotts' stock price fell by $13.58 per share, or 19%, from $71.44 on August 1, 2023, to $57.86 on August 2, 2023 [7].

Core Insights - Scotts Miracle-Gro Company reported a 6% decline in quarterly sales for its fiscal third quarter and a 420 basis point drop in gross margins [5] - The company reduced its fiscal year EBITDA guidance by 25% and announced a $20 million write-down of excess inventories attributed to the pandemic [5] - Scotts modified its debt covenants, increasing the debt-to-EBITDA ratio from 6.25 to 7.00 times [5] Legal Context - A securities class action lawsuit has been filed against Scotts and certain officers for alleged violations of the Securities Exchange Act of 1934, covering the period from November 3, 2021, to August 1, 2023 [8] - The lawsuit claims that the company made materially false and misleading statements regarding inventory levels, debt compliance, and financial performance [6] - Following the announcement of the financial results, Scotts' stock price fell by $13.58, or over 19%, closing at $57.86 per share on August 2, 2023 [9]

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Scotts To Contact Him Directly To Discuss Their Options As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: the Company's inventory levels, debt covenant compliance, and financial performance. Specifically, Defendants repeatedly assured inves ...

Core Viewpoint - The Scotts Miracle-Gro Company is facing legal scrutiny due to significant financial misrepresentations and a decline in stock value, prompting a class action lawsuit for investors who suffered losses exceeding $100,000 between November 3, 2021, and August 1, 2023 [8][9]. Financial Performance - On June 8, 2022, Scotts disclosed that replenishment orders from U.S. retailers were over $300 million below target for May, leading to a drastic reduction in full-year earnings guidance to approximately half of previous estimates [2]. - For the fiscal third quarter on August 2, 2023, Scotts reported a 6% decline in quarterly sales and a 420 basis point drop in gross margins, alongside a 25% cut in fiscal year EBITDA guidance and a $20 million write-down of excess inventories [3]. - The company modified its debt covenants from a 6.25 times debt-to-EBITDA ratio to 7.00 times, indicating increased financial strain [3]. Stock Price Impact - Following the June 2022 disclosures, Scotts' stock price fell by $9.05, or nearly 9%, from $102.18 to $93.13 per share [11]. - On August 2, 2023, the stock price dropped by $13.58, or 19%, from $71.44 to $57.86 per share after the company’s negative financial announcements [12]. Legal Proceedings - A federal securities class action has been filed against Scotts, with a deadline of August 5, 2024, for investors to seek the role of lead plaintiff [8]. - The complaint alleges that Scotts and its executives violated federal securities laws by making false statements regarding inventory levels, debt compliance, and overall financial performance, which led to artificially inflated stock prices during the class period [10].

WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of common stock of The Scotts Miracle-Gro Company (NYSE: SMG) between November 3, 2021 and August 1, 2023, both dates inclusive (the "Class Period"). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 5, 2024. WHAT TO DO NEXT: To join the Scotts class action, go to https://rosenlegal.com/submit-form/? c ...

WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of common stock of The Scotts Miracle-Gro Company (NYSE: SMG) between November 3, 2021 and August 1, 2023, both dates inclusive (the "Class Period"). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 5, 2024. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of succe ...

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. According to the complaint, at the start of the class period, Scotts had an oversupply of inventory that far exceeded consumer demand. Recognizing that problem, Scotts executives engaged in a scheme to saturate the Company's sales channel with more product than those retailers could sell through to end users, a practice that required Scotts sales personnel to pressure retailers to purchase more invento ...

Core Viewpoint - A class action lawsuit has been filed against The Scotts Miracle-Gro Company, alleging that the company misled investors regarding its inventory levels, debt compliance, and financial performance during the Class Period from November 3, 2021, to August 1, 2023 [8][9]. Company Overview - Scotts produces a variety of lawn, garden, and agricultural products for both consumer and professional markets and is the largest marketer of branded consumer products for lawn and garden care [5]. - In 2014, Scotts established The Hawthorne Gardening Company, focusing on hydroponics for the cannabis market [5]. Allegations and Financial Disclosures - The complaint alleges that Scotts executives engaged in a scheme to inflate sales by saturating sales channels with excess inventory, allowing the company to book revenue from distributor sales and maintain earnings to debt ratios just above required levels [2][9]. - On June 8, 2022, Scotts disclosed that replenishment orders from U.S. retailers were $300 million below target for May, leading to a significant cut in its 2022 earnings guidance by approximately 50% and plans to incur additional debt for restructuring [6][9]. - Throughout the Class Period, Scotts allegedly made false statements about inventory levels and debt compliance, assuring investors that inventory was appropriate and that there were no leverage compliance issues [9][12]. Financial Performance and Impact - On August 2, 2023, Scotts reported a 6% decline in quarterly sales and a 420 basis point drop in gross margins, along with a 25% reduction in fiscal year EBITDA guidance and a $20 million write-down for excess inventories [13]. - The company modified its debt covenants from a 6.25 times debt-to-EBITDA ratio to 7.00 times, indicating increased financial strain [13].

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Scotts Miracle-Gro had an oversupply of inventory that far exceeded consumer demand; and (ii) Scotts Miracle-Gro executives engaged in a scheme to saturate Scotts Miracle-Gro's sales channel with more product than those retailers could sell through to end users, a practice that required Scotts Miracle-Gro sales personnel to pressure retailers to purchase more inventory than they wanted or needed ...