Scotts Miracle-Gro Investigation Continued: Kahn Swick & Foti, LLC Continues to Investigate the Officers and Directors of The Scotts Miracle-Gro Company - SMG
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF continues its investigation into The Scotts Miracle-Gro Company (NYSE: SMG) (“Scotts” or the “Company”).
On August 2, 2023, the Company disclosed disappointing financial results including a decline in quarterly sales for fiscal third quarter of 6%, a decline in gross margin by 420 basis points, as well as a cut to fiscal year EBITDA guidance by a staggering 25% and a $20 million write down of “pandemic driven excess inventories.” On this news, the price of Scotts’ shares fell by $13.58 per share, or 19%, from a closing price of $71.44 per share on August 1, 2023, to a closing price of $57.86 per share on August 2, 2023.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information, in violation of federal securities laws. Recently, the court presiding over the case denied the Company’s motion to dismiss in part, allowing the case to move forward.
