SAN FRANCISCO, CA / ACCESSWIRE / January 3, 2023 / Hagens Berman urges Freshworks Inc. (NASDAQ:FRSH) investors who suffered significant losses to submit your losses now.
Defined Class: Purchasers in Freshworks Inc.'s Sept. 21, 2021 IPO
Lead Plaintiff Deadline: Jan. 3, 2023
Contact An Attorney Now: [email protected]
Freshworks Inc. (NASDAQ:FRSH) Securities Class Action:
The litigation focuses on Defendants' misrepresentations and omissions in connection with Freshworks' September 2021 initial public offering ("IPO"), wherein the company sold 28.5 million shares at $36 per share raising over $1 billion in gross proceeds.
Specifically, Freshworks' IPO registration statement repeatedly touted the company's marked increases in its "net dollar retention rate" (the measure of the rate of expansion within its customer base) and in its year-over-year revenue growth rate.
According to the complaint, the IPO registration statement misled investors since it failed to disclose the company's business had encountered significant obstacles, causing Freshworks' net dollar retention rate to plateau and its revenue growth rate and billings to decelerate.
The truth began to reach the market on Feb. 10, 2022, when the company reported Q4 2021 earnings, which included flat calculated billings growth and revenue growth deceleration. In response, the price of Freshworks shares fell approximately 18%.
Then, on May 3, 2022 Freshworks announced its Q1 2022 earnings, which included another quarter of decelerating revenue growth and billings that missed consensus estimates. In response, the price of Freshworks shares fell again.
By the commencement of the action, the stock traded as low as $10.51 per share, a 70% decline from its IPO price.
"We're focused on investors' losses and proving Freshworks misled investors about its slowing growth," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Freshworks and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Freshworks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP