Case Summary

The Scotts Miracle-Gro Company

NYSE: SMG

Case Details

  • City of Hialeah Employees' Retirement System v. The Scotts Miracle-Gro Company et al.
  • Class Period:November 3, 2021 - August 1, 2023
  • Date Filed:June 06, 2024
  • Jurisdiction:U.S. District Court, Southern District of Ohio
  • Docket Number: 2:24-cv-03132
  • Lead Plaintiff Deadline: August 5, 2024
Days Left to
Seek Plaintiff
18

Overview

A class action lawsuit has been filed against The Scotts Miracle-Gro Company (“Scotts” or the “Company”) (NYSE: SMG) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Scotts class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Scotts common stock between November 3, 2021, and August 1, 2023, both dates inclusive (the “Class Period”).  Investors have until August 5, 2024, to seek appointment as lead plaintiff of the Scotts class action lawsuit.

Scotts produces various lawn, garden, and agricultural products for both consumer and professional purposes.  It is also the world’s largest marketer of branded consumer products for lawn and garden care.  Its main brands are Scotts, Miracle-Gro, and Ortho.  Scotts is the exclusive agent of Monsanto for distribution of its consumer Roundup products.  The Company sells a vast majority of its products through third-party distributors.  In 2014, Scotts formed a wholly owned subsidiary, The Hawthorne Gardening Company (“Hawthorne”), which focuses on hydroponics for the emerging cannabis growing market.  The Company divides its business into three reportable segments: U.S. Consumer, Hawthorne, and Other.

The Scotts class action lawsuit alleges that the Company had an oversupply of inventory that far exceeded consumer demand.  Recognizing that problem, Scotts executives engaged in a scheme to saturate the Company’s sales channel with more product than those retailers could sell through to end users, a practice that required Scotts’ sales personnel to pressure retailers to purchase more inventory than they wanted or needed.  Further, as Scotts later admitted, the Company was critically close to violating its debt covenants and would have required an exceptional year to remain in compliance with its covenants.  Ultimately, Scotts was only able to satisfy the covenants through the channel stuffing scheme.

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If you purchased or otherwise acquired Scotts common stock between November 3, 2021, and August 1, 2023, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Scotts lawsuit is August 5, 2024.

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