Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired The Scotts Miracle-Gro Company (“Scotts”) (NYSE: SMG) common stock between May 5, 2021 and August 1, 2023, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and omissions concerning the company’s inventory levels, debt covenant compliance, and financial performance. Specifically, Defendants repeatedly assured investors that the company’s inventory levels were appropriate, while attributing strong sales to “selling through high-cost inventory,” which resulted in “peak selling” and “record” shipments. Defendants also repeatedly assuaged investors’ concerns about the company’s debt, stating that they were “optimistic we will remain within the bounds of our bank covenants” and “[did] not see leverage compliance issues going forward.” As a result of these misrepresentations, Scotts common stock traded at artificially inflated prices during the Class Period.
Current Status of Case:
On July 28, 2025, Defendants filed a Motion to Dismiss the Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.