Law firm investigates Scotts Miracle-Gro after sharp stock drop on poor financial results

Kahn Swick & Foti, LLC has launched an investigation into Scotts Miracle-Gro following the company's announcement of disappointing financial results in August 2023. Scotts reported a 6% decline in quarterly sales, a 420 basis point drop in gross margin, a 25% cut in EBITDA guidance, and a $20 million write-down of excess pandemic inventory. These revelations caused the stock price to fall 19% in one day. The investigation focuses on whether Scotts' executives breached their duties or violated laws, amid an ongoing securities class action lawsuit against the company and some executives for alleged nondisclosure of material information.