The lawsuit, filed by Philadelphia-based firm Berger Montague, claims Smartsheet failed in its duty to disclose a formal acquisition offer from a consortium led by Blackstone, Inc. and Vista Equity Partners Management, LLC. During the period in question, the company allegedly bought back shares at market prices—averaging $46.45 per share—while aware of a pending buyout offer at $56.50 per share. Plaintiffs argue that the company should have either revealed the acquisition talks or suspended its repurchase program to avoid misleading sellers.
Smartsheet Faces Class Action Over Stock Buybacks During Merger Talks
Investors who sold Smartsheet shares between June 1 and September 23, 2024, are being urged to join a class action lawsuit against the software firm. The litigation centers on allegations that the company repurchased its own stock while secretly negotiating a lucrative acquisition by Blackstone and Vista Equity Partners.
The acquisition, which eventually closed in January 2025, sparked the legal challenge over transparency and fair market practice. Investors seeking to participate as a lead plaintiff must file their claims by October 5, 2026. Legal representatives Andrew Abramowitz and Caitlin Adorni are managing the intake for the firm, which has a long history of handling complex securities litigation.
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