NEW YORK, NY - 
(NewMediaWire) - July 24, 2024 - Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of investors that purchased The Scotts Miracle-Gro Company (“Scotts” or the “Company”) (NYSE: SMG) common stock between November 3, 2021 and August 1, 2023 (the “Class Period”).
Deadline Reminder: If you are a member of the proposed Class, you may move the court no later than August 5, 2024 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process.
Scotts produces various lawn, garden, and agricultural products for both consumer and professional purposes. Scotts also has a wholly owned subsidiary, The Hawthorne Gardening Company, which focuses on hydroponics for the cannabis growing market.
On June 8, 2022, Scotts issued a press release revealing that replenishment orders from its retail partners in its U.S. Consumer segment were $300 million below target in the month of May alone. According to the complaint, the Company also revised its 2022 full-year earnings guidance to be roughly half of its prior guidance and announced plans to take on additional debt to cover restructuring charges as it attempted to cut costs.
On June 8, 2022, the price of Scotts common stock fell $9.05 per share, nearly 9%, from a closing price of $102.18 per share on June 7, 2022 to close at $93.13 on June 8, 2022.
Then, on August 2, 2023, Scotts issued a press release reporting its fiscal third quarter financial results, including that “third quarter net sales had declined by 6% due to Hawthorne decline of 40%. . . .” Further, the Company stated that “[g]ross margin rates were also nearly 200 basis points lower from one-time pandemic-driven excess and obsolete inventory write-offs.”
On August 2, 2023, the price of Scotts common stock fell $13.58 per share, or 19%, from a closing price of $71.44 per share on August 1, 2023 to close at $57.86 per share on August 2, 2023.
The complaint alleges, among other things, that throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning inventory levels by repeatedly assuring investors that the Company’s inventory levels were appropriate although, in reality, by the start of the Class Period Scotts had an oversupply of inventory that far exceeded consumer demand.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
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E-mail: pmayer@kaplanfox.com
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E-mail: lking@kaplanfox.com
