SAN FRANCISCO, July 12, 2024 (GLOBE NEWSWIRE) — Hagens Berman calls on MongoDB, Inc. (NASDAQ:MDB) Investors who have suffered significant losses are encouraged to report their losses now.
Class Action Lawsuit against MongoDB, Inc. (MDB):
MongoDB Inc., a provider of document database software, is now facing a class action lawsuit from investors after the company revised its fiscal year 2025 revenue forecast twice in recent months.
Previously, MongoDB management expressed confidence that the company will achieve its fiscal year 2025 revenue targets. This confidence resulted from initiatives such as restructuring sales incentives and reducing pressure on upfront payments to customers. In addition, management emphasized its efforts to mitigate risks associated with seasonal trends and broader economic factors.
However, on March 7, 2024, MongoDB surprised investors by revising its full-year guidance downward. The company attributed the decline to a restructuring of its sales compensation model, which resulted in a decline in upfront payments to customers and revenue from multi-year licensing agreements. Management notably acknowledged that this change could have resulted in a higher forecast had sales capacity not been impacted. This news led to a significant decline in MongoDB’s share price.
Despite these adjustments, management maintained its assessment that the overall business environment for fiscal year 2025 would be similar to that of the previous year.
Then, on May 30, 2024, MongoDB further revised its fiscal year 2025 guidance downward. This time, the company cited macroeconomic factors affecting customer adoption of its MongoDB Atlas product, as well as the ongoing impact of the sales team restructuring. These disclosures led to another significant decline in the company’s share price.
The cumulative effect of these changes has resulted in an estimated $7.5 billion in loss of shareholder value.
Investors have now filed suit against MongoDB and its top executives, claiming they gave the false impression that they had reliable information about the company’s projected revenue outlook and expected growth, while downplaying the risk of seasonality and macroeconomic fluctuations. The suit alleges that when executives made these statements, they knew that macroeconomic headwinds were intensifying and that restructuring MongoDB’s sales incentives was causing a decline in new signups.
“We are investigating whether MongoDB may have downplayed known risks arising from the restructuring of its sales incentives and macroeconomic factors,” said Reed Kathrein, lead partner at Hagens Berman, who led the investigation.
If you have invested in MongoDB and suffered significant losses, report your losses now »
If you would like more information and answers to frequently asked questions about the MongoDB case and our investigation, read on »
About Hagens Berman
Hagens Berman is a global complex plaintiffs’ rights litigation firm with a focus on corporate responsibility. The firm has a robust practice representing investors as well as whistleblowers, employees, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoing. Hagens Berman’s team has won more than $2.9 billion in this area of law. For more information about the firm and its successes, visit hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
