Class Action Filed Against Smartsheet Inc. Over Alleged Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
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Should l Buy ?
Source: PRnewswire
- Class Action Initiated: Pomerantz LLP has announced a class action lawsuit against Smartsheet, alleging securities fraud by the company and its executives, with investors needing to apply as Lead Plaintiff by February 24, 2026, highlighting serious governance concerns.
- Merger Transaction Controversy: The lawsuit relates to the January 2025 merger, accusing the company of issuing misleading proxy statements during the shareholder approval process, which could lead to legal liabilities for the company.
- Financial Misrepresentation: The complaint alleges that Smartsheet intentionally distorted its financial performance in the proxy statement, emphasizing misleading financial metrics that led shareholders to approve the $56.50 per share merger price, which was below analyst targets.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may seek millions in damages for affected shareholders, reflecting significant implications for the company's future financial health and governance structure.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
