Robbins LLP informs investors about the

SAN DIEGO, June 8, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder has filed a class action lawsuit on behalf of individuals and entities who purchased common stock of Scotts Miracle-Gro Company (NYSE: SMG) between November 3, 2021 and August 1, 2023. Scotts manufactures a variety of lawn, garden and agricultural products for both personal and professional use.

For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.

The accusations: Robbins LLP is investigating allegations that Scotts Miracle-Gro Company (SMG) misled investors about its business prospects

According to the complaint, at the beginning of the Class Period, Scotts had an excess inventory of merchandise that far exceeded consumer demand. When Scotts executives recognized this problem, they devised a plan to flood the company’s distribution channels with more product than those retailers could sell to end consumers. In doing so, Scotts sales personnel pressured retailers to purchase more merchandise than they wanted or needed. Ultimately, Scotts was only able to meet its obligations through the channel stuffing plan.

On August 2, 2023, Scotts issued a press release announcing financial results for its third quarter of fiscal 2023, which ended July 1, 2023. In the press release, Scotts announced that it had amended its debt covenants. The most significant change was that the company had to amend its debt covenants to allow a debt-to-EBITDA ratio of 7.00, while the original agreement only allowed a debt-to-EBITDA ratio of 6.25. On the same day, Scotts held a conference call with analysts and investors to discuss the company’s financial results for its third quarter of fiscal 2023. Scotts announced that quarterly revenue for the third fiscal quarter decreased 6% and gross margins decreased 420 basis points. The company also cut its fiscal year EBITDA guidance by a staggering 25% and announced it would have to take a $20 million write-down for “pandemic-related excess inventory.” On this news, Scotts’ common stock price fell $13.58 per share, or 19%, from a closing price of $71.44 per share on August 1, 2023, to a closing price of $57.86 per share on August 2, 2023.

What now: You may be eligible to participate in the class action lawsuit against The Scotts Miracle-Gro Company. Shareholders who wish to serve as lead plaintiff for the class action must file their motions with the Court by August 2, 2024. A lead plaintiff is a representative party acting on behalf of other class members and directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.

Representation is on a contingency basis. Shareholders pay neither fees nor expenses.

About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.

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