The lawsuit, filed by the Philadelphia-based firm Berger Montague PC, centers on an alleged failure to disclose acquisition negotiations. According to the complaint, Smartsheet was actively repurchasing up to $150 million of its own stock at market prices, which averaged $46.45 during the period in question. At the same time, the company was reportedly in high-level talks with Blackstone Inc. and Vista Equity Partners Management, LLC regarding a buyout.

The consortium eventually acquired Smartsheet for $56.50 per share, a price significantly higher than the levels at which the company had been buying back its own shares from investors. Legal representatives argue that Smartsheet had a clear obligation to either reveal the existence of the formal $56.50 offer or halt its repurchase program to prevent shareholders from selling at an undervalued price. Those seeking to serve as lead plaintiffs or obtain further information can contact Andrew Abramowitz at (215) 875-3015 or Caitlin Adorni at (267) 764-4865.