Saxena White P.A. Files Securities Fraud Class Action Lawsuit Against Scotts Miracle-Gro Company and Certain of Its Executives, Expanding the Class Period and Allegations Asserted in Related Action

Core Viewpoint - Saxena White P.A. has initiated a securities fraud class action lawsuit against The Scotts Miracle-Gro Company and certain executives, alleging misrepresentation of inventory levels and financial performance during the class period from June 2, 2021, to August 1, 2023 [1][3]. Group 1: Class Action Details - The class action claims violations of the Securities Exchange Act of 1934, specifically under Sections 10(b) and 20(a), and SEC Rule 10b-5, on behalf of all individuals who purchased Scotts common stock during the specified class period [1]. - The lawsuit expands upon a related action, increasing the class period from November 3, 2021, to August 1, 2023, to June 2, 2021, to August 1, 2023, alleging a channel-stuffing scheme and misrepresentation of inventory and consumer demand [3]. - Investors wishing to serve as lead plaintiff must file a motion by August 5, 2024, as per the Private Securities Litigation Reform Act of 1995 [4]. Group 2: Financial Performance and Misrepresentation - On August 2, 2023, Scotts disclosed a 6% decline in quarterly sales for Q3 2023 and reduced its fiscal year EBITDA guidance by 25%, alongside a $20 million write-down of excess inventory, leading to a 19$300 million shortfall in replenishment orders from U.S. retailers in May 2022, prompting a nearly 50% reduction in fiscal 2022 guidance [7]. Group 3: Company Overview - Scotts Miracle-Gro Company, based in Marysville, Ohio, is a major marketer of branded consumer products for lawn and garden care, with over 90% of its revenue generated from the U.S. Consumer and Hawthorne segments [5]. - The company significantly increased inventory during the COVID-19 pandemic but later faced a mismatch between supply and consumer demand, leading to undisclosed financial issues [5].