Class Action Lawsuit Filed Against Smartsheet Over Alleged Securities Fraud
A class action lawsuit has been filed against Smartsheet, Inc. (NYSE: SMAR) by Pomerantz LLP, alleging securities fraud and failure to disclose material information that allegedly caused the company's stock price to be artificially deflated. The suit claims that between June 1, 2024, and September 23, 2024, Smartsheet repurchased shares at prices below a non-public acquisition offer of $56.25 per share from Blackstone Inc. and Vista Equity Partners Management, LLC (the Consortium). The company later raised its bid to $56.50 per share in July 2024 before the merger was publicly disclosed on September 24, 2024. The lawsuit suggests that Smartsheet had a duty to either disclose these offers or refrain from repurchasing shares at lower prices during this period. The merger closed on January 22, 2025, with the Consortium acquiring Smartsheet for $56.50 per share.
Tickers: $BX
Topics: securities fraud share repurchase stock price manipulation