RADNOR, Pa., November 27, 2022 /PRNewswire/ — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) advises investors that a class action securities lawsuit has been filed against Freshworks Inc. (“Freshworks”) (NASDAQ: FRSH). The suit accuses Freshworks of violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and prospects. Due to Freshworks’ materially misleading statements and omissions to the public, investors in Freshworks have suffered significant losses.
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PRINCIPAL APPLICANT DEADLINE: JANUARY 3, 2023
COURSE PERIOD: SEPTEMBER 22, 2021 THROUGH 1 NOVEMBER 2022
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or by email at [email protected]
Kessler Topaz is one of the world’s foremost advocates for protecting the public from corporate fraud and other wrongdoing. Our securities fraud litigants are consistently individually recognized as leaders in the field and our firm is both feared and respected within the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the categories of shareholders we represent.
ALLEGED MISCONDUCT OF FRESHWORKS
Freshworks, headquartered in San Mateo, California, provides customer engagement software for businesses. On or about September 22, 2021Freshworks completed its IPO, offering 28.5 million shares of common stock to the investing public at a price of $36 per share (the “Offer Price”). Freshworks expected to generate gross proceeds of over $1 billion of the IPO.
According to the registration statement and prospectus filed by Freshworks (collectively, the “Offering Documents”), Freshworks’ business had “increased rapidly” prior to the IPO. As a result, growth rates for the company and the allegedly “healthy” net dollar retention rates, reflecting the use of its products by existing customers and the sale of additional products to those customers, reached levels never before seen, and there was no indication that either was slowing Net dollar retention rate of 118% for the period ended June 30, 2021which represents a significant increase over the net dollar retention rates of 107%, 111% and 112% achieved in June 30, 2020, December 31, 2020 and March 31, 2021respectively, as well as Freshworks’ year-over-year revenue growth rate of 53% (as of June 30, 2021), which also represents a significant increase from the Company’s annual growth rate of 45% for the period ended the 31st of December2020. Unbeknownst to investors, at the time of the IPO, Freshworks’ revenue growth and billing had encountered obstacles.
Shares of Freshworks fell after the company announced its fiscal fourth quarter 2021 results on February 10, 2022during which it reported calculated growth in billings and a deceleration in revenue growth of just 44% year-over-year.
Then, on May 3, 2022, after the market closed, Freshworks released its first quarter 2022 financial results, reporting a third quarter of slowing revenue growth and billings that missed consensus estimates and fell 13% from a quarter to quarter. Many analysts reacted immediately by reducing their price targets.
At the time the complaint was filed, shares of Freshworks were trading as low as $10.51 per share, a drop of nearly 70% from the offer price.
WHAT CAN I DO?
Freshworks investors can, not later than January 3, 2023, seek to be named as the lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages Freshworks investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE TO REGISTER FOR THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the proposed category of investors. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. 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, Pennsylvania 19087
SOURCE Kessler Topaz Meltzer & Check, LLP