CLASS ACTION UPDATE: Berger Montague Advises Investors Of A Securities Fraud Action Filed Against FRESHWORKS INC (NASDAQ:FRSH); Lead Plaintiff Deadline is January 3, 2023
PHILADELPHIA, PA / ACCESSWIRE / November 22, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Freshworks Inc. ("Freshworks") (NASDAQ:FRSH) on behalf of those who purchased securities issued in connection with Freshworks' September 22, 2022 initial public offering (the "IPO" or the "Offering").
Investor Deadline: Investors who purchased or acquired Freshworks securities may, no later than January 3, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/freshworks-inc/
On September 22, 2021, Freshworks conducted its IPO, offering 28.5 million shares of its common stock to the investing public at a price of $36 per share (the "Offering Price").
According to the complaint, Freshworks' stock started to decline after the company announced its fourth fiscal quarter of 2021 earnings on February 10, 2022, during which it reported flat calculated billings growth (of 41% when normalized for early renewals and reserve activity) and revenue growth deceleration (of only 44% year over year). Following this news, Freshworks' stock dropped 18%, closing on February 11, 2022 at $18.41 per share.
Then, on May 3, 2022, after the market closed, Freshworks reported its first quarter 2022 financial results, reporting a third quarter of decelerating revenue growth and billings that missed consensus estimates and declined 13% quarter over quarter. On May 5, 2022, Freshworks closed at $15.99 per share, down approximately 5.72% over two days.
At the time this case was filed, Freshworks' stock traded as low as $10.51 per share, or nearly 70% below the Offering Price.
The complaint alleges that the Offering Documents were false and misleading and omitted to state that, at the time of the Offering, Freshworks' net dollar retention rate had plateaued while its revenue growth rate and billings were, in fact, decelerating.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague