Robbins LLP is Investigating Allegations that Smartsheet Repurchased Outstanding Shares of Stock While Withholding Information About a Viable Acquisition Offer 

Robbins LLP informs investors that a securities class action has been filed on behalf of all sellers of the common stock of Smartsheet Inc. (NYSE: SMAR) between June 1, 2024 and September 23, 2024 (the "Class Period"). Smartsheet is a software-as-a service company that offers its cloud-based work management platform and other professional services.

The complaint alleges that Smartsheet and certain of its senior executives violated the federal securities laws by repurchasing outstanding shares from shareholders with knowledge that a purchaser was proposing to acquire the shares at a significant premium to Smartsheet's then stock price.

Why Was Smartsheet Sued?

The complaint alleges that Blackstone Inc. and Vista Equity Partners Management (the "Consortium") approached Smartsheet on January 24, 2024, with a credible offer to acquire all of the Company's outstanding stock for $56.25 cash per share offer. Smartsheet's board rejected the initial offer, but resumed discussions between July and September 2024. On September 24, 2024, Smartsheet announced the execution of a merger agreement for the Consortium to acquire Smartsheet for $56.50 per share. 

According to the complaint, Smartsheet repurchased its shares while failing to disclose it was in conversations about the Company's acquisition by the Consortium. In total, Smartsheet repurchased 1,128,000 of its outstanding shares from unsuspecting investors for approximately $50 million between June 2024 and August 2024, despite knowing that the Consortium was proposing offers at a significant premium to Smartsheet’s then stock price.

At the same time, defendants made misleading statements touting this significant repurchase activity, updating investors about these buybacks during the Class Period, all with no disclosure concerning the Consortium’s credible offer(s) to acquire Smartsheet shares at materially higher prices. As a result, Smartsheet omitted material information about the Consortium’s offers that the Company had a duty to disclose, and defendants made material misrepresentations about Smartsheet’s repurchases, in violation of the federal securities laws.

When investors learned the truth that the Consortium was willing to buy all of the Company’s outstanding stock for a significant premium above the trading price, Smartsheet’s stock price climbed sharply.

Who May Be Eligible to Participate?

The lawsuit seeks to represent investors who sold Smartsheet Inc. common stock during the applicable Class Period. If you sold Smartsheet stock during this period and suffered investment losses, you may have rights under the federal securities laws. Submit a form for Information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.