US law firms sue Freshworks.
- NY-based Los Angeles-based Scott+Scott Attorneys LLP The Schall Law Firm filed securities class action lawsuits against Freshworks. In a class action lawsuit, one or more plaintiffs sue a defendant on behalf of a large group of people or businesses that have purportedly suffered.
- Scott+Scott’s action alleges that Freshworks’ selling documents for its September 2021 IPO “were false and deceptive and omitted to mention that, at the time of the offering, the Company’s business had encountered hurdles”.
- The Schall Law Company, a nationwide shareholder rights litigation firm, filed similar allegations “for violations of the federal securities laws”. It claims Freshworks “made fraudulent and deceptive market assertions”.
- At the IPO, Freshworks had serious business issues. The company stated that its net dollar retention rate has plateaued and revenue growth and billings were declining.