SMG - SCOTTS ALERT: Bragar Eagel & Squire P.C. Announces that a Class Action Lawsuit Has Been Filed Against The Scotts Miracle-Gro Company and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, June 07, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against The Scotts Miracle-Gro Company ("Scotts" or the "Company") (NYSE:SMG) in the United States District Court for the Southern District of Ohio on behalf of all persons and entities who purchased or otherwise acquired Scotts securities between November 3, 2021, and August 1, 2023, both dates inclusive (the "Class Period"). Investors have until August 2, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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. In 2014, Scotts formed a wholly owned subsidiary, The Hawthorne Gardening Company, which focuses on hydroponics for the emerging cannabis growing market. The Company sells a vast majority of its products through third-party distributors.
During the Class Period, Scotts was highly leveraged, with its senior secured credit facilities containing various restrictive covenants and cross-default provisions that require the Company maintain specific financial ratios. A breach of any of these covenants could result in a default, enabling the Company's lenders to declare all outstanding indebtedness immediately due and payable. A key covenant required that Scotts maintain a debt-to-EBITDA ratio under 6.25. In 2020 and ...