Smartsheet Shareholders File Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: PRnewswire
- Lawsuit Background: Smartsheet shareholders have filed a class action lawsuit against Blackstone, Vista Equity Partners, and the Abu Dhabi Investment Authority, alleging violations of Sections 14(a) and 20(a) of the Securities Exchange Act due to misleading information related to the merger.
- Shareholder Rights Impacted: The lawsuit claims that shareholders approved the sale at $56.50 per share without knowing the true financial outlook, severely damaging their rights and affecting their investment decisions.
- Financial Metrics Concealment: The complaint alleges that the defendants failed to disclose Smartsheet's Annual Recurring Revenue (ARR) metric in the proxy statement, despite it being a key indicator of future financial performance, preventing shareholders from fully assessing the company's prospects.
- Legal Process Explanation: Under the Private Securities Litigation Reform Act, any investor holding Smartsheet securities as of the merger record date can seek to be appointed as lead plaintiff in the class action, representing all other shareholders to ensure their rights are protected.
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.
