NEW YORK, July 11, 2024 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against MongoDB, Inc. (“MongoDB” or the “Company”) and certain of the Company’s officers.
If you have suffered losses on your MongoDB investment, please send your information to https://www.bfalaw.com/cases-investigations/mongodb-inc.
Investors have until September 9, 2024, to ask the court to direct the case. The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in MongoDB securities between August 31, 2023 and May 30, 2024. The case is pending in the U.S. District Court for the Southern District of New York and is titled John Baxter v. MongoDB, Inc. et al.No. 1:24-cv-05191.
What is the lawsuit about?
The lawsuit alleges that the company misrepresented the purported benefits of restructuring its sales force, including that the restructuring helped reduce friction in acquiring new customers and increase new business wins from existing customers.
These statements were alleged to be materially false and misleading. In fact, the restructuring of MongoDB’s sales team resulted in a near-complete loss of upfront customer commitments, a significant reduction in the amount of actionable intelligence collected by the sales team, and hampered enrollment and revenue growth.
On March 7, 2024, the company reportedly announced that it experienced an annualized decline in multi-year license revenue of approximately $40 million due to sales restructuring, expected nearly zero revenue from unused Atlas commitments (one of its core offerings) in fiscal 2025, and provided disappointing revenue growth guidance that fell short of the prior year’s guidance. This news caused MongoDB’s stock price to decline $28.59 per share, or approximately 7%, from $412.01 per share on March 7, 2024, to $383.42 per share on March 8, 2024.
Then, on May 30, 2024, the company again announced significantly reduced growth expectations. This time, growth forecasts for fiscal 2025 were cut even further, with losses again attributed to the restructuring of the sales team. On this news, MongoDB stock price fell by $73.94 per share, or almost 24%, from $310.00 per share on May 30, 2024 to $236.06 per share on May 31, 2024.
Click here if you have suffered losses: https://www.bfalaw.com/cases-investigations/mongodb-inc.
What can you do?
If you have invested in MongoDB, Inc., you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency basis. There are no costs for youShareholders will not be responsible for any court or litigation costs. The Company will seek court approval for any fees and costs. Send your information:
https://www.bfalaw.com/cases-investigations/mongodb-inc
Or contact us at:
Ross Shikowitz
[email protected]
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in class actions and shareholder litigation. It was named a Top 5 Plaintiffs Firm for 2023 by ISS SCAS and its lawyers have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Recent notable successes include BFA recovering over $900 million in value from the board of Tesla, Inc. (subject to court approval) and $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/mongodb-inc
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