Law Firm Reminds Scotts Miracle-Gro Investors of Class Action Deadlines
Kaplan Fox & Kilsheimer LLP has reminded investors who purchased The Scotts Miracle-Gro Company stock between November 2021 and August 2023 of deadlines to join a securities fraud class action lawsuit.
NEW YORK – June 20, 2024 – Law firm Kaplan Fox & Kilsheimer LLP has issued a reminder to investors in The Scotts Miracle-Gro Company who have suffered losses due to the company's stock price decline. The lawsuit concerns the period between November 3, 2021, and August 1, 2023. Investors are urged to contact the firm for more information regarding potential participation in a class action.
The company is accused of making misleading statements and omitting material information regarding its inventory management and future outlook. Specifically, allegations suggest the company provided false information about an oversupply of inventory that far exceeded demand, while downplaying its impact on financial results.
According to Kaplan Fox, on June 8, 2022, Scotts disclosed that replenishment orders from its U.S. Consumer segment retailers were $300 million below target for the month of May. Concurrently, the company halved its full-year 2022 earnings guidance and announced plans to incur additional debt to cover restructuring charges. This news led to a nearly 9% drop in the company's stock price.
The situation intensified on August 2, 2023, when Scotts reported its fiscal third-quarter financial results, revealing a 6% decline in net sales, largely due to a 40% decrease in its Hawthorne Gardening Company segment. The company also cited inventory write-offs, resulting in a nearly 200 basis point decrease in gross margin. This announcement caused the stock price to fall by 19%.
The deadline to move the court to serve as a lead plaintiff for the proposed class is August 5, 2024. Kaplan Fox, with over 50 years of experience in securities litigation, advises investors who have experienced losses to contact them promptly.