Smartsheet Shareholders Invited to Lead Class Action Lawsuit Against Alleged Misconduct

Smartsheet Investors Targeted for Class Action Participation

On January 12, 2026, Robbins Geller Rudman & Dowd LLP issued a significant alert for shareholders of Smartsheet Inc. (NYSE: SMAR) about an opportunity to participate in a class action lawsuit. This legal maneuver comes in light of accusations pertaining to alleged breaches of the Securities Exchange Act during the company's acquisition process involving heavyweight firms such as Blackstone Inc., Vista Equity Partners, and the Abu Dhabi Investment Authority.

Shareholders who held Smartsheet securities as of October 25, 2024, and suspect they were negatively impacted by the actions of Smartsheet prior to its merger are encouraged to assert their rights before the deadline of February 24, 2026, to seek the appointment as lead plaintiff in this emerging lawsuit against the company. The legal proceedings, titled "Kara Eftimoglu v. Mader, No. 25-cv-02530 (W.D. Wash.)," aims to address critical concerns regarding the transparency and legality of announcements made leading up to the merger.

The Allegations

The class action lawsuit takes aim at various alleged missteps tied to the proxy statement filed with the SEC by Smartsheet. Claims suggest that the proxy, which was essential during the solicitation of shareholder approval, contained false and misleading information. As a result, shareholders purportedly agreed to a merger at an undervalued price of $56.50 per share, missing out on potential earnings reflective of Smartsheet's actual financial trajectory.

Specifically, the lawsuit asserts that the proxy statement ignored crucial narratives regarding a key performance metric: Smartsheet's Annual Recurring Revenue (ARR). This figure, which serves as a vital indicator of the company's ongoing financial health, was allegedly minimized or omitted entirely from public disclosures made during this critical time. In addition, the lawsuit highlights that forecasts prepared outside the context of the takeover negotiations went unmentioned, preventing shareholders from adequately assessing Smartsheet's future financial prospects and making informed decisions.

The Role of the Lead Plaintiff

Investors who held Smartsheet stock can apply for the role of lead plaintiff under The Private Securities Litigation Reform Act of 1995. The responsibility of the lead plaintiff involves acting on behalf of all class members in steering the lawsuit. It is worth noting that this role requires having the most at stake financially, which indicates a commitment to advocate for the group’s financial interests.

Additionally, the lead plaintiff can choose their preferred legal representation to navigate the complexities of the case. Investors do not need to hold this leading role to benefit from any potential recoveries resulting from the lawsuit. Therefore, participation in this class action could be an essential avenue for recovering losses related to the Smartsheet merger activity.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands tall as a leading law firm dedicated to representing investors embroiled in securities fraud and shareholder litigation. Their track record is noteworthy; they ranked #1 in securing financial restitution for investors according to ISS Securities Class Action Services over the past five years. In 2024 alone, Robbins Geller reclaimed more than $2.5 billion for investors embroiled in similar class action scenarios.

For further insights and to pursue participation in the class action, shareholders are encouraged to visit the official Robbins Geller website. Interested parties may also reach out directly to J.C. Sanchez at Robbins Geller for personalized guidance.

In conclusion, this class action provides a pivotal opportunity for Smartsheet shareholders affected by the alleged misconduct to come together and seek accountability, highlighting the importance of shareholder rights in corporate governance and the continuous scrutiny needed in business practices.

This legal note underscores the importance of informed decision-making for shareholders and emphasizes advocacy for transparency in corporate dealings. With March's deadline approaching, affected shareholders should act swiftly to protect their interests.