Kahn Swick & Foti, LLC Launches Class Action Against Smartsheet Inc. Shareholders

Class Action Lawsuit Filed by Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC, a prominent law firm specializing in securities litigation, has recently filed a significant class action lawsuit in the United States District Court for the Western District of Washington on behalf of shareholders of Smartsheet Inc. The case is registered under the number 225-cv-02530. This lawsuit targets former public common shareholders who held shares as of October 25, 2024, and are claiming that they suffered damages due to alleged violations by the company's executives in connection with a merger transaction.

Background of the Merger

In January 2025, Smartsheet completed its acquisition by affiliates of Blackstone Inc., Vista Equity Partners Management, LLC, and the Abu Dhabi Investment Authority. According to the terms of this merger, shareholders received $56.50 in cash for each share of Smartsheet common stock they owned. However, the plaintiffs argue that this compensation was insufficient and did not accurately reflect the company's true value.

The lawsuit particularly focuses on the Definitive Proxy Statement issued by Smartsheet, via the SEC, on November 4, 2024, which was later supplemented. The complaint alleges that the statement provided materially incomplete and misleading information. This purported lack of transparency is claimed to breach the requirements under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, which are designed to protect shareholders during corporate mergers and acquisitions.

Implications for Shareholders

Shareholders who wish to participate in the class action as lead plaintiffs are urged to act quickly. The deadline for filing a motion to be appointed as a lead plaintiff is February 24, 2026. Interested parties can do so through the counsel of their choice or may opt to remain as absent class members, retaining their rights within the lawsuit.

For those seeking further information, a copy of the Complaint is accessible via Kahn Swick & Foti’s website. Potential class members can also contact the firm directly. Michael Palestinia, a representative from Kahn Swick & Foti, can be reached for inquiries regarding the lawsuit.

About Kahn Swick & Foti, LLC

Established as one of the nation’s leading securities litigation law firms, Kahn Swick & Foti has a track record of dedicated service in the realm of corporate securities law. The firm, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., aims to recover losses for investors who have been impacted by corporate wrongdoing. With offices in major cities like New York and New Orleans, KSF continues to advocate for the rights and financial interests of both institutional and retail investors across the country.

This class action lawsuit is part of KSF's broader mission to ensure that investors are treated fairly and to hold corporations accountable for their actions. The outcome of this lawsuit could set a significant precedent for future securities litigation, emphasizing the necessity for corporate transparency and accountability in mergers and acquisitions.

For more information about this lawsuit and Kahn Swick & Foti’s other legal services, please visit their official website.