- The Scotts Miracle-Gro Co. (NYSE:SMG) is facing a class-action securities lawsuit headed by the legal firm Levi & Korsinsky
- According to the filed complaint, the fertilizer company’s management made false statements and/or concealed that it had an oversupply of inventory that far exceeded consumer demand
- Scotts executives recognized this problem and engaged in a scheme to saturate the company’s sales channel with making more product than those retailers could sell
- The Scotts Miracle-Gro Co. opened trading at US$63.63 per share
The Scotts Miracle-Gro Co. (NYSE:SMG) is facing a class-action securities lawsuit headed by the legal firm Levi & Korsinsky.
According to the filed complaint, the fertilizer company’s management made false statements and/or concealed that it had an oversupply of inventory that far exceeded consumer demand.
Needing a legitimate “miracle” on their hands, Scotts executives recognized this problem and engaged in a scheme to saturate the company’s sales channel with making more product than those retailers could sell through to end users, a practice known as a “channel stuffing scheme” that required Scotts sales personnel to pressure retailers to purchase more inventory than they wanted or needed.
The suits at Levi & Korsinsky want to recover losses of shareholders who were said to be adversely affected by alleged securities fraud between Nov. 3, 2021, and Aug. 1, 2023. They are looking for anyone who believes this happened to them to contact their offices.
The Scotts Miracle-Gro Co. is a manufacturer and marketer of branded consumer products for lawn and garden care.
The Scotts Miracle-Gro Co. (NYSE:SMG) opened trading at US$63.63 per share.
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(Top image: The Scotts Co. LLC)