AeroGrow $15.98M Securities Class Action Settlement

Investors who held AeroGrow International Inc. common stock as of Feb. 26, 2021, and had the right to receive the merger consideration may be eligible to receive a payment from a class action settlement.

Scotts Miracle Gro Co. and other defendants agreed to pay $15,978,202.50 to settle a class action lawsuit alleging that AeroGrow minority shareholders received inadequate compensation in connection with the 2021 merger.

Who are the class members?

The settlement class includes shareholders of AeroGrow International Inc. who held AeroGrow common stock as of Feb. 26, 2021, the effective date of the merger, and were entitled to receive the $3.00 per share merger consideration, as well as their successors or assigns.

Additional Details

• Both individuals and entities can be class members.
• Eligible shareholders must have owned AeroGrow common stock on the merger date.
• Only shareholders entitled to receive the merger consideration qualify for payment. Successors or assigns of eligible shareholders may participate in the settlement.

How much can class members get?

The total settlement fund is $15,978,202.50. The amount each class member will receive depends on several factors:

• Court approved deductions for attorneys’ fees, litigation expenses and administration costs
• The total number of AeroGrow shares eligible for payment
• The number of shares each class member held as of Feb. 26, 2021

The settlement administrator will distribute payments on a pro rata, per share basis according to a court approved distribution plan.

• Each eligible share will receive the same per share recovery. The settlement administrator will calculate payments as follows:
• Net Settlement Fund ÷ total number of eligible shares = per share recovery
• Per share recovery × number of shares held = individual payment

• Only shareholders who held AeroGrow common stock as of Feb. 26, 2021, and were entitled to receive the $3.00 per share merger consideration will receive a payment.
• The settlement does not impose a minimum or maximum payout amount. All eligible shares participate equally in the distribution.
• The settlement administrator will distribute payments only after the court approves all deductions and the settlement becomes final.

No action required to receive payment

Eligible class members do not need to file a claim form. The settlement administrator will distribute payments automatically based on records of share ownership as of the merger date.

Settlement administrator’s mailing address: AeroGrow Shareholder Litigation, c/o A.B. Data Ltd., P.O. Box 170500, Milwaukee, WI 53217

Proof of documentation required

No claim form or proof is required. The settlement administrator will rely on existing shareholder records to identify eligible class members and calculate payments.

$15.98 million settlement fund

The settlement fund of $15,978,202.50 includes:

• Settlement administration costs: Up to $150,000
• Attorneys’ fees: Up to $5,326,067.50
• Attorneys' expenses: Up to $850,000
• Service awards to lead plaintiffs: Up to $35,000 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: March 9, 2026
• Fairness hearing: April 30, 2026

When is the AeroGrow securities class action settlement payout date?

The settlement administrator will distribute payments after the court grants final approval and all appeal deadlines expire. 

Why is there a class action settlement?

The lawsuit alleged defendants caused AeroGrow minority shareholders to receive unfair compensation in the 2021 merger by breaching fiduciary duties and failing to disclose material information.

Defendants denied all allegations but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Stipulation and Agreement of Settlement