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Class action lawsuits filed against Freshworks for misleading investors

Freshworks has suffered significantly as a result of lawsuits launched against the company by US-based litigation companies Scott + Scott Attorneys and The Schall Law firm for allegedly supplying “false and deceptive” documents during its Nasdaq listing.

Schall Law Firm filed a Freshworks class action lawsuit concurrently with Scott+Scott Attorneys’ securities class action lawsuit. One of the cases claims that Freshworks’ IPO filings withheld the information that the company’s operations were facing financial “obstacles.” In addition to Freshworks, specific directors, officials, and underwriters of the company’s September 2021 IPO were named in the complaints. The corporation recorded a $58 million loss in Q2 FY23 despite the ongoing market downturn.

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