SAN DIEGO, July 18, 2024 (GLOBE NEWSWIRE) – Shareholder rights law firm Johnson Fistula, LLP announces that a class action lawsuit has been filed on behalf of investors in MongoDB, Inc. (NASDAQ: MDB).
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School lesson: August 31, 2023 – May 30, 2024
Deadline for lead plaintiff: 9 September 2024
File number: 24-CV-05191
Accusations: Material false and misleading statements
Contact for further information: James Baker, (619) 814-4471, [email protected]
The lawsuit alleges that defendants made predominantly positive statements to investors while simultaneously disseminating materially false and misleading statements and/or concealing material adverse facts related to the restructuring of MongoDB’s sales incentive systems, including: a significant reduction in the information collected by their sales force regarding the performance of new Atlas registrations without upfront commitments, reduced pressure to increase the number of new registrations, and a significant loss of revenue from unused commitments. Such statements, without considering these material facts, induced plaintiff and other shareholders to purchase MongoDB securities at artificially inflated prices.
However, on March 7, 2024, investors began to question the credibility of Defendants’ public statements during MongoDB’s earnings call following a press release on the same day announcing fiscal 2024 earnings. In relevant part, Defendants announced near-zero expected revenue from unused Atlas commitments in fiscal 2025, a decrease in revenue of approximately $40 million attributable to the Company’s decision to change its sales incentive structure to reduce enrollment friction. In addition, MongoDB announced estimated growth for fiscal 2025 (which ends January 31, 2025). Notably, Defendants only forecast 14% growth, compared to the 16% forecast for the previous year, which had resulted in actual growth of 31%.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, engaged in a scheme to deceive the market, and engaged in a course of conduct that artificially inflated the price of MongoDB common stock and constituted fraud or deception against purchasers of MongoDB common stock during the Class Period by materially misleading investors.
Action steps for investors: Shareholders who suffered losses during the Class Period have until 9 September 2024to move the court to allow lead plaintiff in this action. A lead plaintiff will act on behalf of all other class members and direct the class action. The lead plaintiff may select a law firm of his or her choice to conduct the class action. An investor’s ability to share in any potential future benefits from the class action is not dependent on serving as lead plaintiff.
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Contact:
Johnson Fistula, LLP
501 W. Broadway, Suite 800, San Diego, CA 92101
James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
[email protected] or [email protected]
