SMG Class Action Alert: Robbins LLP Reminds Investors of the Lead Plaintiff Deadline in The Scotts Miracle-Gro Company Class Action

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].