The complaint filed in federal court alleges that Smartsheet executives systematically misled shareholders by touting stock buybacks while failing to disclose that a private equity consortium had made credible offers to acquire the company. According to the filing, Smartsheet repurchased 1,128,000 shares for approximately $50 million during the summer of 2024, despite being in active negotiations for a buyout at a premium price. When the acquisition by the consortium was finally announced in late September at $56.50 per share, the company’s stock price reacted sharply to the suppressed information.
Smartsheet Faces Class Action Over Alleged Buyback Misconduct
Investors who sold Smartsheet Inc. common stock between June and September 2024 are being urged to join a class action lawsuit filed by Robbins LLP. The litigation centers on claims that the cloud software company repurchased shares while concealing acquisition offers from Blackstone and Vista Equity Partners that significantly exceeded market value.
Robbins LLP asserts that this nondisclosure deprived investors of the true value of their holdings during the designated class period. Individuals who suffered financial losses through these sales are eligible to participate in the litigation. Those interested in seeking appointment as a lead plaintiff must submit their applications to the court by October 5, 2026. Participation in the class action does not require investors to serve as lead plaintiff to remain eligible for a potential recovery, and the firm operates on a contingency fee basis, meaning investors do not pay out-of-pocket litigation expenses.
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