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MDB Class Action Notice: Shareholder Rights Law Firm Robbins LLP Reminds Investors of the Lead Plaintiff Deadline in the Class Action Against MongoDB, Inc.
Globe Newswire 19-Jul-2024 2:10 PM
SAN DIEGO, July 19, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired MongoDB, Inc. (NASDAQ:MDB) securities between August 31, 2023 and May 30, 2024. MongoDB is an American software company that designs, develops, manufactures, and sells developer data platforms and integrated services systems through its document-oriented database program.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that MongoDB, Inc. (MDB) Misled Investors Regarding its Business Prospects
The complaint alleges that during the class period defendants disseminated materially false and misleading statements and/or concealed material adverse facts related to MongoDB's sales force incentive restructure, including: a significant reduction in the information gathered by their sales force as to the trajectory for the new Atlas enrollments without upfront commitments; reduced pressure on new enrollments to grow; and a significant loss of revenue from unused commitments. Such statements absent these material facts caused investors to purchase MongoDB's securities at artificially inflated prices.
The complaint continues that investors began to question the veracity of defendants' public statements on March 7, 2024, during MongoDB's earnings call following a same day press release announcing its fiscal year 2024 earnings. Defendants purportedly announced an anticipated near zero revenue from unused Atlas commitments in fiscal year 2025, a decrease of approximately $40 million in revenue, attributed to the Company's decision to change their sales incentive structure to reduce enrollment frictions. Additionally, MongoDB provided estimated growth for the fiscal year 2025 of just 14% growth, compared to projected 16% for the previous year, which had resulted in an actualized 31% growth. On this news, the price of MongoDB's common stock declined from a closing market price of $412.01 per share on March 7, 2024, to $383.42 per share on March 8, 2024.
Plaintiff alleges that notwithstanding the March 7 disclosures, defendants continued to mislead investors as they continued to create the false impression that they possessed reliable information pertaining to the Company's projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations.
The truth finally emerged on May 30, 2024, when MongoDB again announced significantly reduced growth expectations, this time cutting fiscal year 2025 growth projections further, again attributing the losses to the Company's decision to change their sales incentive structure to reduce enrollment frictions, along with some allegedly unanticipated macro headwinds. On this news, the price of MongoDB's common stock declined from $310.00 per share on May 30, 2024, to $236.06 per share on May 31, 2024, a decline of nearly 24%.
What Now: You may be eligible to participate in the class action against MongoDB, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 9, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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