The legal complaint alleges that Smartsheet failed to disclose multiple takeover offers from Blackstone Inc. and Vista Equity Partners Management, LLC. While these private negotiations were ongoing, the company reportedly executed a $150 million share repurchase program, buying back stock at prices significantly lower than the $56.50 per share eventually offered by the consortium. Plaintiffs argue that the company had a fiduciary duty to either make the acquisition interest public or halt the buybacks to avoid misleading shareholders.
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Smartsheet Faces Class Action Over Alleged Undisclosed Acquisition Offers
Investors who held Smartsheet stock between June and September 2024 are being urged to join a class action lawsuit filed by Pomerantz LLP. The litigation centers on claims that the company repurchased its own shares at market prices while suppressing news of a lucrative acquisition bid from a private equity consortium.
The class period covers the window between June 1, 2024, and September 23, 2024, during which Smartsheet shares traded at an average of $46.45. The acquisition by the Blackstone and Vista consortium was eventually finalized in January 2025 at the $56.50 valuation. Investors seeking to serve as Lead Plaintiff in this action must file their applications with the court by October 5, 2026. Pomerantz LLP, which specializes in securities litigation, is managing the case and coordinating with affected shareholders.
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