MongoDB (MDB) class action deadline approaches: Shareholders encouraged to come forward for possible refund of their money

SAN DIEGO, July 23, 2024 /PRNewswire/ – Shareholder rights law firm Johnson FistulaLLP announces that a class action lawsuit has been filed on behalf of investors in MongoDB, Inc. (NASDAQ: MDB).

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SCHOOL LESSON: 31 August 2023 – May 30, 2024
DEADLINE FOR MAIN WAREHOUSES: 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) or (email protected)

The complaint claims Defendants made predominantly positive statements to investors while simultaneously disseminating factually 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 on the performance of new Atlas registrations without upfront payments, reduced pressure to increase new registrations, and a significant loss of revenue from unused commitments. Such statements, without considering these material facts, caused Plaintiff and other shareholders to purchase MongoDB securities at artificially inflated prices.

However, investors began to question the credibility of the defendants’ public statements. March 7, 2024during MongoDB’s conference call following a press release on the same day announcing fiscal year 2024 results. In relevant part, defendants announced expected near-zero revenue from unused Atlas obligations in fiscal year 2025, a decrease of approximately 40 million US dollars revenue, which is due to the company’s decision to change its sales incentive structure to reduce enrollment friction. In addition, MongoDB announced estimated growth for fiscal year 2025 (ending January 31, 2025). In particular, the defendants only forecast growth of 14%, compared to the 16% forecast for the previous year, which had resulted in actual growth of 31%.

The complaint claims that during the Class Period, Defendants made materially false and misleading statements and engaged in a scheme to deceive the market and a course of action that artificially inflated the price of MongoDB common stock and served as Fraud or deceive the 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 FistulaLLP
501 W. Broadway, Suite 800, San Diego, California 92101
James BakerInvestor Relations or Frank J. Johnson, Esq.(619) 814-4471
(email protected) or (email protected)

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