ACCESSWIRE
30 Nov 2022, 07:43 GMT+10
PHILADELPHIA, PA / ACCESSWIRE / November 29, 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 jmaro@bm.net or (215) 875-3093, or Andrew Abramowitz at aabramowitz@bm.net 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.
Contacts:
James Maro, Senior Counsel
Berger Montague
(215) 875-3093
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
SOURCE: Berger Montague
Get a daily dose of Kansas City Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kansas City Post.
More InformationWASHINGTON D.C.: The White House said this week that Tesla Chief Executive Elon Musk met with John Podesta, a Democratic ...
MANILA, Philippines: In an effort to attract more tourists, President Ferdinand Marcos has approved a value-added tax refund program for ...
TRIPOLI, Libya: Italian prime minister Giorgia Meloni held talks on energy and migration in Libya this weekend, which are major ...
MIAMI, Florida: This decade, the US south is expected to see more new residents than any other region in the ...
NEW YORK CITY, New York: After reporting record revenues in the fourth-quarter of 2022, US airlines expect strong travel demand ...
MANILA, Philippines: After a Filipina domestic worker was killed and dumped in the desert in the oil-rich emirate of Kuwait, ...
BEIJING, China: As COVID-19 restrictions and a slowing economy curbed consumer demand in 2022, China's smartphone sales witnessed a record ...
TOKYO, Japan: After struggling for years to promote its products amid protests from conservationists, Japanese whaling company Kyodo Senpaku announced ...
NEW DELHI, India: Marking a year since the Tata Group took control of Air India, the former state-run carrier has ...
NEW YORK, New York - A slowing of wages growth in the fourth quarter, as reported by the Labor Department, ...
NEW YORK CITY, New York: As it sets aside more funds to cover potentially bad loans, American Express announced that ...
LONDON, England: Flybe, a British regional airline, abruptly closed operations on January 28. The airline offered flight to Belfast, Birmingham ...