Freshworks Fails to End Investors’ Suit Tying Report to Losses

Freshworks Inc. investors overcame the software company’s argument that they can’t trace the cause of their stock losses to a rosy financial filing made before the shares’ initial public offering, a federal court ruled.

Although Freshworks is correct about the legal standards the investors must meet, it hasn’t shown that the case can’t succeed on the facts alleged, Judge Charles R. Breyer said Tuesday for the US District Court for the Northern District of California.

Freshworks, which operates a customer communications platform for small and mid-sized businesses, made overly optimistic statements before its Sept. 22, 2021, IPO, according to the ...