Smartsheet Investors Targeted in Class Action Over Buyback Allegations

The legal action, spearheaded by Wolf Haldenstein Adler Freeman & Herz LLP, centers on a period when Smartsheet allegedly kept a takeover bid private. During this window, the company reportedly executed a $150 million share repurchase program, buying back stock at an average price of $46.45 per share. The lawsuit contends that this practice disadvantaged unsuspecting shareholders who sold their positions on the open market, unaware that a consortium had offered to acquire the company for $56.50 per share.

The discrepancy came to light on September 24, 2024, when Smartsheet finally disclosed the acquisition terms. By the time the merger closed in January 2025, the acquisition price stood significantly higher than the market rates available to those who offloaded their holdings during the contested class period. Investors impacted by these trades have until October 5, 2026, to file as a lead plaintiff in the case.