Cloud-based Software Company Freshworks Faces Class-Action Lawsuit

By: Sharjeel Sohaib

• 

Dec 3, 2022

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Key Points

  • McCune Law Group (MLG), McCune Wright Arevalo Vercoski Kusel Weck Brand APC (MLG) is a national law firm specializing in Securities Litigation, Class Actions, and Commercial Litigation. 
  • Two attorneys, Elaine S. Kusel and Sherief Morsy from MLG, are handling this investigation. 

Sundaram v. Freshworks Inc. et al., No. 3:22-cv-06750, was filed in the United States District Court for the Northern District of California (N.D. Cal. November 01, 2022). The lawsuit asserts claims under Sections 11 and 12 of the Securities Act of 1933. 

Investors have until January 03, 2023, to file a motion to be appointed as the main plaintiff in the lawsuit. 

Why is Freshworks, Inc. Being Accused?

According to the lawsuit, Freshworks held its initial public offering (IPO) around September 22, 2021, issuing 28.5 million shares of common stock to the investing public for $36 per share. 

Freshworks is accused of making false and misleading representations in its registration statements and prospectus, according to the lawsuit. The lawsuit contends explicitly that Freshworks neglected to disclose that its firm has met substantial hurdles, such as a plateau in its net retention rate and a slowing of revenue growth and billings. 

As the truth came out, the value of Freshworks shares plummeted, causing investors to suffer.

What to do if you’ve invested in Freshworks, Inc.?

Any investor who bought or otherwise acquired Freshworks shares in the IPO should seek appointment as lead plaintiff under the Private Securities Litigation Reform Act of 1995. 

The lead plaintiff is often the movant having the highest financial stake in the remedy sought by the putative class, who is also representative of the putative class. In leading the Freshworks class action case, the lead plaintiff acts on behalf of all other class members. 

The lead plaintiff may choose any legal firm to represent them in the Freshworks class action case. The ability of an investor to participate in any possible future recovery is not contingent on acting as lead plaintiff in the Freshworks class action case.

How Does McCune Law Group Handle Investigations?

MLG’s Securities Litigation lawyers defend investors harmed by fraud, fraud, and schemes. The group’s staff investigates all compensation possibilities to optimize customers’ recovery during this trying period. 

MLG’s Securities Litigation Practice Group strives to hold firms responsible for unfair or unlawful financial activities using hard-hitting techniques and devoted legal specialists to preserve their clients’ interests.

The group has a long track record of success for its clients, including a $203 million decision against Wells Fargo Bank, over $1 billion in client recovery, and over 100 contingency cases with recoveries of $1 million or more. 

MLG operates California locations in Ontario, San Bernardino, Calimesa, Palm Desert, and Irvine, as well as Illinois and New Jersey offices to serve its nationwide practice. They have defended Southern California citizens for over 30 years. The group has evolved as the leading consumer rights business in the Inland Empire.

Wrap Up!

MLG is investigating potential claims against Freshworks, Inc. (NASDAQ: FRSH) based on accusations that false or misleading representations impacted the share prices of Freshworks securities. The group has a lengthy track record of success for its clients, including a $203 million judgment against Wells Fargo Bank, over $1 billion in client recovery, and over 100 contingency cases with $1 million or more recoveries. MLG has offices in Ontario, San Bernardino, Palm Desert, and Irvine, California.

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