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Scotts Miracle-Gro Co

INVESTOR ACTION NOTICE: Moore Law PLLC Encourages Investors in The Scotts Miracle-Gro Company to Contact Law Firm

NEW YORK , Sept. 6, 2024 /PRNewswire/ -- Moore Law, PLLC, a shareholder law firm located on Wall Street, is investigating potential claims against:

  • The Scotts Miracle-Gro Company (NYSE: SMG)

**Shareholders should email Fletcher@fmoorelaw.com

The investigation concerns misrepresentations or omissions regarding Scotts' debt covenants. In or around 2021, Scotts touted that the Company beat internal targets and had "net leverage of 5.9 times debt-to-EBITDA comfortably within covenant maximum of 6.25 times." The Company further claimed it was "optimistic we will remain within the bounds of our bank covenants" and "[did] not see leverage compliance issues going forward" and that it was "tracking to do even better" than its guidance, which the Company later stated was "really, really important for us to avoid covenant hell."

In truth, Scotts inventory far exceeded consumer demand and was only in compliance with its debt covenants through purposely channel stuffing and accounting devices. It was also close to violating its debt covenants and needed to have an "exceptional year" to remain in compliance. In its fiscal fourth quarter of 2022, Scotts changed how it calculated EBITDA in order to stay within its debt covenants, as EBITDA was the main metric to calculate the Company's compliance.

On June 8, 2022, Scotts admitted that U.S. retailers' replenishment orders were more than $300 million below target in May. The Company also announced plans to take on additional debt to cover restructuring charges as it attempted to cut costs.

On this news, Scotts common stock price declined by $9.05 per share, or nearly 9%, from a closing price of $102.18 per share.

If you own The Scotts Miracle-Gro Company (NYSE: SMG), please contact Fletcher Moore by email at fletcher@fmoorelaw.com or (212) 709-8245. 

ABOUT MOORE LAW PLLC

Moore Law is a NYC plaintiff litigation law firm for investors. We hold officers and directors accountable for breaches of fiduciary duty, fraud, insider trading, and other corporate malfeasance. There is no cost to you. Our investor cases are contingency only.

Fletcher Moore, Esq.
Moore Law, PLLC
fletcher@fmoorelaw.com 
(212) 709-8245
www.fmoorelaw.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/investor-action-notice-moore-law-pllc-encourages-investors-in-the-scotts-miracle-gro-company-to-contact-law-firm-302241041.html

SOURCE Moore Law PLLC