Smartsheet Class Action Lawsuit: An Authoritative and Complete Investor Guide

• A notice in a class action like the Smartsheet class action lawsuitrefers to the formal communication sent to potential class members informing them about the lawsuit and their rights to participate in it.

• This notice is a crucial part of the class action process as it ensures that all individuals who may be affected by the outcome of the Smartsheet class action lawsuitare aware of their rights and can choose whether to opt-in or opt-out of the class.

• The notice typically contains information about the nature of the Smartsheet class action lawsuit, the claims being made, and the potential benefits or risks associated with participation. It also provides instructions on how to file a claim or request exclusion from the class.

• Overall, the notice serves to promote transparency and fairness in the class action process by ensuring that all affected individuals have an opportunity to exercise their legal rights.

Allegations in the Smartsheet Class Action Lawsuit

Smartsheet is a software-as-a-service company that offers its cloud-based work management platform and other professional services.

• The Smartsheet class action lawsuit alleges that defendants throughout the Class Period repurchased millions of dollars’ worth of Smartsheet shares without disclosing material nonpublic information about credible offers that Smartsheet had received to acquire all of Smartsheet’s outstanding stock at significant premiums to Smartsheet’s stock price.

• The Smartsheet class action lawsuit alleges that on January 24, 2024, Blackstone Inc. and Vista Equity Partners Management, LLC approached Smartsheet with a credible offer to acquire all of Smartsheet’s outstanding stock for $56.25 per share.

• Smartsheet’s board of directors allegedly rejected the initial offer, but continued discussions between July and September 2024.  In April 2024, Smartsheet’s board of directors allegedly approved a share repurchase program, under which Smartsheet could repurchase up to $150 million of its outstanding common stock.

• According to the Smartsheet class action lawsuit, Smartsheet began repurchasing shares on June 1, 2024, with knowledge of Blackstone Inc. and Vista Equity Partners Management, LLC’s continued interest in acquiring Smartsheet.

In total, Smartsheet allegedly repurchased 1,128,000 of its outstanding shares from unsuspecting investors for approximately $50 million between June 2024 and August 2024, despite knowing, and without disclosing, that Blackstone Inc. and Vista Equity Partners Management, LLC were proposing offers at a significant premium to Smartsheet’s then stock price.

• On September 24, 2024, Smartsheet allegedly announced the execution of a merger agreement for Blackstone Inc. and Vista Equity Partners Management, LLC to acquire Smartsheet for $56.50 per share.

• The Smartsheet class action lawsuit further alleges that defendants made misleading statements touting this significant repurchase activity, updating investors about these buybacks during the Class Period, all with no disclosure concerning Blackstone Inc. and Vista Equity Partners Management, LLC’s credible offers to acquire Smartsheet shares at materially higher prices.

• As a result, Smartsheet allegedly omitted material information about the offers that Smartsheet had a duty to disclose, and defendants made material misrepresentations about Smartsheet’s repurchases, in violation of the federal securities laws.

According to the Smartsheet class action lawsuit, when investors learned the truth that Blackstone Inc. and Vista Equity Partners Management, LLC were willing to buy all of Smartsheet’s outstanding stock for a significant premium above the trading price, Smartsheet’s stock price climbed sharply.