As previously reported, SaaS behemoth Freshworks is considering a class action lawsuit in the United States for allegedly misleading investors in the run-up to its Nasdaq listing last year.
Litigation firms Scott+Scott, Bronstein, Gewirtz & Grossman, Schall Law, and Kahn Swick & Foti have informed the company’s investors and shareholders about the lawsuit filed by Mohan R Sundaram in the United States District Court for the Northern District of California. The lawsuit, filed in the United States, claims that Freshworks’ revenue growth and billings were hampered, despite the company claiming to have a healthy net dollar retention. Net dollar retention is an important metric in SaaS that determines how well a company can retain and maximise revenue from existing customers. Freshworks’ net dollar retention fell to 107% in the September quarter, down from 111% in Q2 2022 and 117% in Q3 2021.