Invested in
Freshworks Inc.?
Contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Are you concerned about the FRSH stock price decline following Freshworks’ Inc.’s announcements of disappointing results?
- Are you concerned about recent allegations of false and misleading statements made to investors, in a lawsuit against Freshworks and its directors and officers?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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The Freshworks Class Action Investigation page is the resource for investors who bought Freshworks shares and would like to evaluate compensation claims.
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Posted December 12, 2022
Freshworks Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating alleged securities violations, corporate misconduct, and misrepresentations, as well as questionable business practices involving Freshworks Inc., and have identified potential areas of concern.
What Freshworks Inc. Investors May Do
FRSH stock investors interested to evaluate potential options to seek compensation and/or pursue claims related to their Freshworks Inc. investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Freshworks Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned FRSH stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Freshworks Class Action Lawsuit Over Investor Losses
Freshworks Inc., Rathna Girish Mathrubootham, Freshworks Inc.’s Chairman and Chief Executive Officer, Tyler Sloat, Freshworks’Chief Financial Officer, together with the certain Freshworks board members and underwriters, were named defendants in a class action complaint alleging violations of securities laws.
The class action complaint alleges, among others, that the Registration Statement and the Prospectus issued by Freshworks in connection with its September 2021 Initial Public Offering (“IPO”), including its amendments, were negligently prepared and “contained materially incorrect or misleading statements and/or omitted material information.” Furthermore, Freshworks allegedly failed to disclose that at the time of its IPO the company’s revenue growth and billings had “encountered obstacles.”
According to the class action complaint, Freshworks allegedly failed to disclose that company’s net dollar retention rate had plateaued while its revenue growth rate and billings were decelerating.
Freshworks Price Per Share Drops Following Reports of Negative Financial Results
In February 2022, Freshworks allegedly announced its earnings for the fourth quarter and full year ended December 31, 2021. In contrast with previously made claims of “rapid growth,” the Form 8-K reported flat calculated billings growth and revenue growth deceleration.
Then in May 2022, following the issuing of further disappointing first quarter 2022 results, analysts allegedly responded by reducing their Freshworks stock price targets.
According to the class action complaint, the market reacted negatively to the consecutive reports of decelerating growth, and in December 2022, the price per Freshworks share was reportedly down more than 70% its IPO price, data from Google Finance shows.
As a result, the Freshworks Inc. class action plaintiff sought compensatory damages, rescission, pre- and post-judgment interest, as well as reasonable attorneys’ fees and costs, and expert fees. The class action is currently pending.
Invested in Freshworks and Would Like to Know if You Have a Claim for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation on behalf of FRSH shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Freshworks investor concerned about your investment and/or its value, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Freshworks investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
About Freshworks Inc.
Freshworks Inc. is a San Mateo, California based company that markets itself as a SaaS platform provider that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. Reportedly founded in 2010 in India, Freshworks is incorporated in Delaware and through mid-November 2016 was known as FreshDesk Inc.
Between 2012 and 2018, FreshDesk nka as Freshworks filed eight Notices of Exempt Offering of Securities disclosing it organized private securities offerings before filing a Draft Registration Statement in May 2021.
The Rule 424(b)(4) Prospectus was filed in September 2021, announcing the issuance of 28,500,000 of Class A common stock shares at $36 per share, for a total offering price of $ 1,026,000,000. The company also announced that the common stock has been approved for listing on Nasdaq under the symbol “FRSH.”
Data from Yahoo! Finance shows that on November 2, 2021 the price per FRSH shares closed at $50.07. Since then the price per Freshwork shares has been in relatively consistent decline and as of December 12, 2022 the price per FRSH share was $15.27.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Freshworks Class Action Investigation page is not affiliated with Freshworks Inc.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
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DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.