The Scotts Miracle-Gro Company

Registration Deadline:


A securities class action has been filed in the USDC S.D.OH. against The Scotts Miracle-Gro Company (SMG) (“Scotts” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Scotts common stock between November 3, 2021 and August 1, 2023, both dates inclusive (the “Class Period”).


Based in Marysville, Ohio, 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. Scotts 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 claim arises on June 8, 2022, when Scotts revealed that replenishment orders from its U.S. retailers were $300 million below target in the month of May alone.


The complaint alleges that, throughout the Class Period, Defendants made numerous 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. On August 2, 2023, Scotts revealed that quarterly sales for its fiscal third quarter had declined by 6% and gross margins fell by 420 basis points.



If you purchased Scotts common stock during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.


About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.

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