Faruqi & Faruqi LLP Reminds Shareholders of a Lead Plaintiff Deadline on August 5, 2024 in Scotts Lawsuit

Core Viewpoint - The Scotts Miracle-Gro Company is facing a federal securities class action lawsuit due to allegations of misleading statements regarding inventory levels, debt compliance, and financial performance, which led to artificially inflated stock prices during the class period [1][9]. Financial Performance - On August 2, 2023, Scotts reported a 6% decline in quarterly sales for its fiscal third quarter and a drop in gross margins by 420 basis points [2]. - The company reduced its fiscal year EBITDA guidance by 25% and announced a $20 million write-down of excess inventories attributed to the pandemic [2]. - Scotts modified its debt covenants from a 6.25 times debt-to-EBITDA ratio to a 7.00 times ratio [2]. Stock Price Impact - Following the disclosures on August 2, 2023, Scotts' stock price fell by $13.58 per share, or 19%, from $71.44 to $57.86 [11]. - The stock also experienced a decline of $9.05 per share, nearly 9%, from $102.18 to $93.13 on June 8, 2022, after earlier disclosures [6]. 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 [9]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [4].