Freshworks faces class action lawsuit in US for false statements during IPO

One of the two law firms suing Freshworks is urging investors who have incurred losses of $100,000 to join the litigation, asserting that the company has violated federal security laws

The poster boy of India’s software-as-a-services (SaaS) success story, Freshworks is facing a class action lawsuit filed by Schall Law Firm and Scott + Scott Attorneys at Law. Both the US-based law firms have alleged that the company made false and misleading statements to the market.

The lawsuit claims that Freshworks was facing considerable business difficulties at the time of the IPO. “The company’s net dollar retention rate had plateaued, and both the revenue growth rate and billings were slowing down. Based on these facts, the company’s public statements were false and materially misleading throughout the IPO period. When the