PremiumFreshworks Inc., a company listed on the Nasdaq, was the target of class action lawsuits filed on Tuesday for breaking federal securities laws by the US-based The Schall Law Firm and Scott+Scott Attorneys at Law
Nasdaq-listed Freshworks Inc. on Tuesday was hit by class action lawsuits by two US-based firms for alleged violations of federal securities laws.
The lawsuits by The Schall Law Firm and Scott+Scott Attorneys at Law allege that Freshworks, an IT solutions company, made false and misleading statements in its initial public offering documents for its Nasdaq listing.
“The Company made false and misleading statements to the market. Freshworks was facing considerable business difficulties at the time of the IPO. The Company’s net dollar retention rate had plateaued, and both the revenue growth rate and billings were slowing down. Based on these facts, the Company’s public statements were false and materially misleading throughout the IPO period," said a statement by The Schall Law Firm.
The US law firm urged investors with losses amounting $100,000 to contact the firm, and asked shareholders to reach out before 3 January 2023.
Freshworks was facing obstacles during the time of its listing. With investors learning about the company’s factual operational position, a chunk of its shares’ value eroded, leading to losses to shareholders, Scott+Scott Attorneys at Law said in its statement.
The software-as-a-service firm made its Nasdaq debut in September last year.