Freshworks Allegedly Harmed by Board’s Growth Claims Before IPO

Freshworks Inc. directors did the software provider no favors when they falsely touted its rapid growth and largely untapped market before its initial public offering, a stockholder says in a derivative suit.

The company’s subsequent revenue and billings slowdown led to a stock-price slide that currently has shares trading at about 70% below their IPO price, Stephen Bushansky says in his complaint filed on behalf of the company.

The overly optimistic statements and subsequent decline in share value caused Freshworks to be embroiled in a securities class action, Bushansky says. His complaint was entered Monday in the docket of ...