Smartsheet Shareholders File Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Should l Buy ?
Source: Businesswire
- Lawsuit Background: Smartsheet shareholders have filed a class action lawsuit against Blackstone and Vista Equity Partners, alleging violations of Sections 14(a) and 20(a) of the Securities Exchange Act due to misleading information related to the acquisition, seeking damages.
- Unfair Acquisition Price: The lawsuit claims that shareholders accepted an acquisition price of $56.50 per share without fully understanding critical financial metrics like Annual Recurring Revenue (ARR), arguing that this price was unfair and detrimental to shareholder interests.
- Disclosure Failures: Plaintiffs assert that the proxy statement prior to the acquisition failed to disclose Smartsheet's ARR growth and the 2024 financial forecasts, preventing shareholders from fully assessing the company's financial prospects, which impacted their voting decisions.
- Legal Process Overview: Under the Private Securities Litigation Reform Act, any investor holding Smartsheet securities as of the record date can seek appointment as lead plaintiff in the class action, representing other shareholders and selecting a law firm for litigation.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
