SMARTSHEET INC. (SMAR) CLASS ACTION DEADLINE APPROACHING: Berger Montague Advises Investors to Inquire About a Securities Fraud Class Action by October 5, 2026

Berger Montague filed a class action lawsuit against Smartsheet on behalf of investors who sold common stock between June 1, 2024 and September 23, 2024. Eligible investors have until October 5, 2026 to seek appointment as lead plaintiff. The announcement creates legal and reputational risk for Smartsheet but provides no details on alleged damages or claims.

Analysis

This is not a tradable catalyst for SMAR if the company remains privately held following its take-private transaction; the announcement is a plaintiff-firm solicitation rather than an independently adjudicated finding. The unusually narrow seller-focused class definition suggests a transaction-timing or disclosure theory, where damages depend on proving that sellers transacted at an artificially depressed price—not simply demonstrating later adverse information. That raises substantial certification, loss-causation, and damages-model risk, making any eventual recovery highly uncertain and likely years away.

The relevant market read-through is limited. Former sponsors/owners and deal advisors could face incremental legal-cost or indemnification exposure, but it is unlikely to be material without a court ruling, a large settlement, or evidence of misconduct beyond the complaint allegations. Public workflow-software peers—including ASAN, MNDY, and TEAM—should not see a valuation impact: a litigation notice does not alter their demand outlook, retention, AI product monetization, or competitive position. Watch only for a filed amended complaint containing specific internal-document allegations, denial of a motion to dismiss, or a settlement amount that establishes a meaningful benchmark for private-equity-backed software transactions.

Key Decisions for Investors

• No SMAR position: there is no apparent public equity instrument through which to express this event, and the announcement alone has no reliable near-term valuation implication.
• Do not short ASAN, MNDY, or TEAM on litigation contagion; maintain existing fundamental views. Reassess only if discovery or a court ruling identifies sector-wide disclosure practices, which is unlikely within the next 6-12 months.
• Set a legal-event alert for docket developments after the October 5 lead-plaintiff deadline: a dismissal would confirm negligible economic significance, while survival of a motion to dismiss with quantified damages would justify reviewing any indemnity exposure at the former transaction parties.