Opinion

Carone

Court
District Court, S.D. Ohio
Filed
Dec 10, 2025
Cited by
0 cases

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF OHIO

EASTERN DIVISION

GARY THOMAS CARONE, derivatively on behalf of

SCOTTS MIRACLE-GRO COMPANY, :

: Case No. 2:24-cv-04180

Plaintiffs, :

: Judge Algenon L. Marbley

v. :

: Magistrate Judge Chelsey M. Vascura

JAMES HAGEDORN, et al., :

:

Defendants, :

:

and :

:

SCOTTS MIRACLE-GRO COMPANY, :

:

Nominal Defendant. :

_______________________________________

IN RE THE SCOTTS MIRACLE-GRO :

COMPANY DERIVATIVE LITIGATION, :

: Case No. 2:24-cv-03636

:

: Judge Algenon L. Marbley

:

: Magistrate Judge Chelsey M. Vascura

OPINION & ORDER

This matter is before this Court on Plaintiff Gary Carone’s Unopposed Motion to

Consolidate Related Stockholder Derivative Actions. (ECF No. 24). Specifically, the Motion

moves to consolidate this matter (the “Carone Action”) with the lawsuit captioned In re Scotts

Miracle-Gro Company Derivative, Case No. 2:24-cv-03636 (S.D. Ohio) (“the Related Action”).

For the reasons set forth below, this Court GRANTS the Motion.

I. BACKGROUND

The actions Plaintiff seeks to consolidate are presently pending before this Court. The

Carone Action Complaint was filed on November 19, 2024, derivatively and on behalf of nominal

defendant, The Scotts Miracle-Gro Company (“Scotts”). (2:24-cv-04180, ECF No. 1). It is a

shareholder derivative action seeking to remedy allegations of breaches of fiduciary duties as

officers and/or directors of Scotts, unjust enrichment, and violations of Sections 14(a) and 20(a)

of the Securities Exchange Act of 1934. (Id.). On March 3, 2025, this Court consolidated two other

shareholder derivative actions captioned Scott v. The Scotts Miracle-Gro Company, et al., Case

No. 2:24-cv-03636-ALM-CMV (filed July 8, 2024) and Ayers v. Hagedorn, et al., Case No. 1:24-

cv-00402-JPH (filed July 30, 2024) that ultimately became the Related Action. This Court ordered

that the Consolidation Order shall apply to “each shareholder derivative action arising out of the

same, or substantially the same, transactions or events as these cases, which is subsequently filed

in, removed to, reassigned to, or transferred to this Court.” (ECF No. 24 at 3). Like the Carone

Action, the Related Action seeks to remedy certain alleged wrongdoings by certain current and

former members of its Board of Directors and executive officers for breaches of fiduciary duties

and unjust enrichment. Plaintiff’s Motion is unopposed.

II. STANDARD OF REVIEW

Under Federal Rule of Civil Procedure 42(a), if actions before a court involve a common

question of law or fact, the court has the discretion to: (1) join for hearing or trial any or all matters

at issue in the actions; (2) consolidate the actions; or (3) issue any other orders to avoid unnecessary

cost or delay. The underlying objective of consolidation “is to administer the court’s business with

expedition and economy while providing justice to the parties.” Advey v. Celotex Corp., 962 F.2d

1177, 1180 (6th Cir. 1992) (internal quotation marks and citation omitted). The Court must take

care “that consolidation does not result in unavoidable prejudice or unfair advantage.” Cantrell v.

GAF Corp., 999 F.2d 1007, 1011 (6th Cir. 1993).

III. LAW & ANALYSIS

For purposes of Rule 42 consolidation, questions of law and fact need not be

identical. MacLean v. Evans, Mechwart, Hambleton & Tilton, Inc., No. 2:09-CV-521, 2009 WL

2983072, at *2 (S.D. Ohio Sept. 14, 2009) (“[T]hese cases involve many of the same facts and

legal issues . . . and that is enough to justify consolidation.”) (internal quotation marks and citations

omitted). Rule 42 gives the Court discretion to consolidate as long as there are some common

questions of law or fact. Id.

The Carone Action and Related Action involve some of the same parties. Specifically, both

actions are on behalf of Scotts, and the cases contain overlapping named defendants. Overall, this

Court finds there is significant overlap in law and fact between the cases, which strongly supports

consolidation.

The Court next turns to the question of whether specific risks of prejudice and possible

confusion are overborne by the savings of litigant and judicial resources achieved by consolidation.

Factors that may cause prejudice and confusion include complex legal theories and factual

proof. See Choi v. Stevenson Co., No. 3:08–CV–0057–S, 2011 WL 1625055 (W.D. Ky. Apr. 28,

2011). Absent prejudice, consolidation is usually the most efficient method of adjudicating cases

arising from common law or fact. MacLean, 2009 WL 2983072, at *1. Efficiency is determined

by the need to analyze issues common to all parties, overlap in discovery, witnesses, and

evidence. Id. at *2. Here, consolidation was unopposed, and both cases are already pending before

this Court. This Court finds that consolidation of the Carone Action and Related Action will be

the most efficient method of adjudicating these related matters and will not unfairly prejudice any

parties or cause any significant confusion. Therefore, this Court GRANTS the Motion to

Consolidate. (2:24-cv-04180, ECF No. 24).

IV. CONCLUSION

For the reasons set forth above, this Court GRANTS the Motion to Consolidate. (2:24-cv-

04180, ECF No. 24). Accordingly, the Carone Action (2:24-cv-04180), and Related Action (2:24-

cv-03636) are CONSOLIDATED (the “Consolidated Action”). This Court hereby orders:

e The Consolidated Action will be captioned: In re The Scotts Miracle-Gro Company

Derivative Litigation, Case No. 2:24-cv-03636-ALM-CMV.

e The Clerk of the Court is directed to administratively close Carone v. Hagedorn, et al.,

Case No. 2:24-cv-04180-ALM-CMV. This administrative closure is solely for

administrative purposes and shall not operate as a dismissal on the merits of any claims

or defenses.

e All future filings shall be made only in the Consolidated Action, /n re The Scotts Miracle-

Gro Company Derivative Litigation, Case No. 2:24-cv-03636-ALM-CMV.

e All papers and documents previously filed and/or served in the Carone Action shall be

deemed a part of the record in the Consolidated Action.

IT IS SO ORDERED.

ALGENOML. MARBL

UNITED STATES DISTRICT JUDGE

DATED: December 10, 2025

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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