A securities class action has been filed against Smartsheet Inc. (SMAR) behalf of all sellers of the common stock of Smartsheet between June 1, 2024 through September 23, 2024. This case has been filed in the USDC – SDNY.
The complaint alleges Smartsheet made no disclosure concerning the Consortium’s offers, while the Company repurchased millions of dollars of its own shares at prices far below the Consortium’s offers. In total, Smartsheet repurchased 1,128,000 of its outstanding shares from unsuspecting investors for approximately $50 million between June 2024 and August 2024, despite knowing that the Consortium was proposing offers at a significant premium to Smartsheet’s then stock price.
Defendants made misleading statements touting this significant repurchase activity, updating investors about these buybacks during the Class Period, all with no disclosure concerning the Consortium’s credible offer(s) to acquire Smartsheet shares at materially higher prices. As a result, Smartsheet omitted material information about the Consortium’s offers that the Company had a duty to disclose, and Defendants made material misrepresentations about Smartsheet’s repurchases, in violation of the federal securities laws.