The complaint filed by Robbins LLP centers on a series of share buybacks executed while Smartsheet executives were allegedly in active negotiations with a consortium led by Blackstone Inc. and Vista Equity Partners. Court documents indicate that while the company spent approximately $50 million to repurchase 1,128,000 shares, it failed to disclose that the consortium had proposed a buyout at $56.25 per share.
Investors Target Smartsheet Over Hidden Acquisition Talks
A securities class action lawsuit now targets Smartsheet Inc., alleging the software firm repurchased over one million shares from investors while suppressing news of a lucrative acquisition offer. Shareholders who sold stock between June 1 and September 23, 2024, are being urged to evaluate their legal standing.
Plaintiffs contend that Smartsheet’s leadership misled the market by touting these buybacks as routine financial maneuvers, despite holding material information about a significant premium offer. The company later finalized a merger agreement with the consortium at $56.50 per share on September 24, 2024, causing a sharp rise in stock value that left those who sold during the summer period at a disadvantage. Investors seeking to serve as lead plaintiff in this litigation must submit their applications to the court by October 5, 2026.
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