Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Scotts, and Gritstone and Encourages Investors to Contact the Firm

Scotts Miracle-Gro Company - The company was highly leveraged during the Class Period, with a key covenant requiring a debt-to-EBITDA ratio under 6.25, which it failed to maintain [1][3] - Executives allegedly engaged in a scheme to inflate sales by saturating sales channels with excess inventory, allowing the company to book revenue from distributors [2][10] - On August 2, 2023, the company reported a 6% decline in quarterly sales and a 420 basis point drop in gross margins, while slashing fiscal year EBITDA guidance by 25% and taking a $20 million write down for excess inventories [3][11] - The company modified its debt covenants from a 6.25 to a 7.00 times debt-to-EBITDA ratio, leading to a significant decline in stock price [3][10] Gritstone bio, Inc. - In September 2023, the company entered a contract with BARDA to conduct a 10,000 participant Phase 2b study for its COVID-19 vaccine candidate, which would be fully funded by BARDA [5] - The launch of the Phase 2b study was delayed until Fall 2024 to ensure the use of GMP-grade raw materials, resulting in a 27.86% drop in stock price [6][14] - The company faced challenges in launching the study as anticipated, which affected its ability to secure external funding and maintain its financial position [14][15]