INVESTOR REMINDER: Berger Montague Notifies Smartsheet Inc. (SMAR) Investors of a Class Action Lawsuit and Deadline

Berger Montague filed a class action lawsuit against Smartsheet on behalf of investors who sold SMAR shares between June 1, 2024 and September 23, 2024. Eligible investors have until October 5, 2026 to seek appointment as lead plaintiff. The announcement creates litigation-related overhang for Smartsheet, though no alleged damages, specific claims, or financial exposure were disclosed.

Analysis

There is no direct public-equity expression: SMAR was taken private, so a plaintiff-firm announcement alone should not create a tradable dislocation. The unusual seller class definition points to a claim centered on allegedly incomplete disclosure ahead of the take-private premium, rather than an operating-fundamentals misstatement; damages will depend on proving both causation and a counterfactual value absent the alleged omission. Plaintiff-law-firm releases are solicitation events, not an independently validated assessment of claim strength.

The relevant economic exposure is likely limited to transaction-related indemnities, insurance, or the post-close entity rather than Blackstone (BX) shareholders. A meaningful read-through to BX would require evidence that the claim survives merger defenses, exceeds insurance/indemnity layers, or alleges governance conduct attributable to sponsor-controlled entities; none is established here. Over the next 1-3 months, the only potentially material catalyst is a substantive complaint, lead-plaintiff appointment, or motion-to-dismiss ruling that specifies damages theory and defendants; absent that, this is immaterial noise.

Key Decisions for Investors

• No new position: SMAR is no longer publicly traded, and the current disclosure provides no quantified liability or verified allegation to underwrite.
• Maintain BX as a watch item only; do not alter exposure unless a filed complaint names Blackstone-related defendants or quantifies a liability plausibly above insurance and deal-indemnity protections.
• Set an event alert for the first substantive complaint and any dismissal ruling. A credible claim would need to show a specific omitted transaction-process fact, a material incremental sale-price counterfactual, and recoverable damages after merger-related legal defenses.