Investors Claim Smartsheet Concealed Acquisition Offers During Buybacks

The lawsuit, filed by the Rosen Law Firm, centers on a period when Smartsheet allegedly engaged in share buybacks while failing to disclose that a consortium of investors had made formal bids to purchase the company. According to the complaint, a consortium offered $56.25 per share in January 2024, later increasing the bid to $56.50 by July. During the class period, Smartsheet traded at an average price of $46.45 per share while the board simultaneously authorized a $150 million stock repurchase program. Plaintiffs argue that the company had a legal obligation to reveal these acquisition offers before buying back stock from unsuspecting investors at market prices significantly lower than the proposed buyout figures.

Following the public disclosure of the merger negotiations on September 24, 2024, the deal eventually closed in January 2025 at $56.50 per share. Investors seeking to participate in the litigation or serve as a lead plaintiff must contact the Rosen Law Firm by the October deadline. As no class has been certified yet, affected individuals retain the right to choose their own counsel or remain absent class members, as potential recovery is not contingent upon serving as a lead representative.