FRESHWORKS DEADLINE: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Freshworks Inc. of Deadline in Securities Fraud Class Action Lawsuit
RADNOR, Pa., Dec. 30, 2022 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California against Freshworks Inc. ("Freshworks") (NASDAQ: FRSH). The action charges Freshworks with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Freshworks' materially misleading statements and omissions to the public, Freshworks' investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE:JANUARY 3, 2023
CLASS PERIOD: SEPTEMBER 22, 2021 THROUGH NOVEMBER 1, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or via email at email@example.com
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
FRESHWORKS' ALLEGED MISCONDUCT
Freshworks, headquartered in San Mateo, California, provides customer engagement software for businesses. On or about 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"). Freshworks anticipated generating gross proceeds of over $1 billion from the IPO.
According to the Registration Statement and Prospectus filed by Freshworks (collectively, the Offering Documents"), Freshworks' business had "grown rapidly" in the lead up to the IPO. As a result, the company's growth rates and purportedly "healthy" net dollar retention rates, reflecting the usage of its products from existing customers and the sale of additional products to these customers, reached levels not previously achieved, and there was no indication that either was decelerating. In fact, the Offering Documents repeatedly and prominently touted Freshworks' 118% net dollar retention rate for the period ended June 30, 2021, which represented a noteworthy increase from the 107%, 111%, and 112% net dollar retention rates achieved as of June 30, 2020, December 31, 2020 and March 31, 2021, respectively, as well as Freshworks' year-over-year revenue growth rate of 53% (as of June 30, 2021), which likewise represented a significant increase over the Company's 45% year-over-year growth rate for the period ended December 31, 2020. Unbeknownst to investors, at the time of the IPO, Freshworks' revenue growth and billings had encountered obstacles.
Freshworks' stock declined after the Company announced its fourth fiscal quarter of 2021 earnings on February 10, 2022, during which it reported flat calculated billings growth and revenue growth deceleration of only 44% year over year.
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. Many analysts immediately responded by reducing their price targets.
By the filing of the complaint, Freshworks' shares traded as low as $10.51 per share, a decline of nearly 70% from the Offering Price.
WHAT CAN I DO?
Freshworks investors may, no later than January 3, 2023, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Freshworks investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERETO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9fffd0f3-f2ea-4c3f-923e-d8375806ee5c