Scotts Miracle-Gro (SMG) Inventory Misrepresentation Case

S.D. Ohio

Court

2:24-cv-03132

Case number

03 Nov 2021

Class period Start

01 Aug 2023

Class period End

05 Aug 2024

Lead Plaintiff motion deadline

$SMG stockholder filed a claim vs. Scotts Miracle-Gro for hiding excessive inventory levels and the risk of breaching debt agreements.
On August 2, 2023, after the financial results, $SMG dropped by 19%.
Scotts investors can join this case to be notified about potential recovery.
Case Details:

On June 8, 2022, Scotts admitted it missed sales targets, causing $SMG to drop by 8.9%, losing $514M+ in shareholder value.

Then, on August 2, 2023, Scotts reported lower sales for the Q3, cut its earnings forecast, and wrote down $20M of excess inventory, leading to a $SMG 19% drop.

Based on these events, a $SMG stockholder filed a claim against Scotts and its leaders, accusing them of the following:
Scotts was unable to manage its inventory and financial ratios.
The oversupply of inventory and subsequent financial disclosures harmed the company's financial stability.
Considering all the representations, investors have reasons to suspect that Scotts hid excessive inventory levels and the risk of breaching debt agreements.

Case Status

Case Consolidation

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08 June 2022

Filing date

05 August 2024

Lead Plaintiff Deadline

05 August 2024

Judge

Algenon L. Marbley

Scotts Miracle-Gro (SMG) Inventory Misrepresentation Case

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