The complaint alleges that Smartsheet and its leadership breached fiduciary duties by failing to disclose acquisition offers from a consortium consisting of Blackstone Inc. and Vista Equity Partners Management. While the company was allegedly aware of bids reaching $56.50 per share, it reportedly continued a $150 million stock repurchase program at market prices averaging roughly $46.45 per share. Plaintiffs argue that the company was obligated to either reveal the existence of the acquisition interest or suspend its buyback activity to avoid misleading shareholders.
Smartsheet Faces Class Action Over Alleged Undisclosed Acquisition Offers
Investors who held Smartsheet stock between June and September 2024 are being urged to join a class action lawsuit filed by Pomerantz LLP. The litigation centers on claims that the company repurchased its own shares at deflated market prices while withholding knowledge of a lucrative pending takeover bid from private equity firms.
The consortium’s interest surfaced publicly on September 24, 2024, leading to a merger that ultimately closed in January 2025 at the $56.50 price point. Investors who acquired securities during the specified class period now have until October 5, 2026, to petition the court for appointment as lead plaintiff. Those interested in the action may contact Danielle Peyton at Pomerantz LLP to discuss the filing and potential recovery options.
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