Smartsheet Class Action Lawsuit Over Buyout
Analysis based on 32 articles · First reported Jan 30, 2026 · Last updated Feb 13, 2026
The class action lawsuit against Smartsheet and its former management could lead to financial penalties and reputational damage for the involved parties. For the broader market, it highlights the importance of transparent financial disclosures during corporate acquisitions and may encourage increased scrutiny of similar deals.
A class action lawsuit has been filed against Smartsheet Inc. on behalf of its former stockholders, alleging that they were misled during the January 2025 sale of Smartsheet to a consortium comprising affiliates of Blackstone Inc., Vista Equity Partners, and the United Arab Emirates===Abu Dhabi Investment Authority. The complaint, filed by Rosen Law Firm, claims that Smartsheet's defendants issued a false and misleading Schedule 14A Proxy statement to the United States===United States Securities and Exchange Commission. This statement allegedly intentionally mischaracterized Smartsheet's financial success and performance to solicit stockholder approval for the buyout. Specifically, it is alleged that Smartsheet's quarterly earnings were deliberately cast in a negative light, and a fabricated financial metric was emphasized. Mark P. Mader is also accused of failing to exercise reasonable care in his disclosure duties. The deadline for former Smartsheet stockholders to serve as lead plaintiff in the class action is February 24, 2026.
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