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Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against MongoDB, Inc. (MDB)
Globe Newswire 19-Aug-2024 12:00 PM
LOS ANGELES, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming September 9, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired MongoDB, Inc. ("MongoDB" or the "Company") (NASDAQ:MDB) securities between August 31, 2023 and May 30, 2024, inclusive (the "Class Period").
If you suffered a loss on your MongoDB investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/MongoDB-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On March 7, 2024, MongoDB disclosed that it anticipated near zero revenue from unused Atlas commitments in fiscal year 2025, a decrease of approximately $40 million in revenue, due to a change in the Company's sales incentive structure to reduce enrollment frictions. Additionally, the Company provided an estimated growth for the fiscal year 2025 of only 14% compared to the previous year's growth of 31%.
On this news, MongoDB's stock price fell $28.59, or 6.9%, to close at $383.42 per share on March 8, 2024, thereby injuring investors.
Then, on May 30, 2024, MongoDB again announced reduced growth expectations, cutting growth projections for fiscal year 2025 further. The Company cited the same sales incentive structure change as the cause, as well as some allegedly unanticipated macro headwinds.
On this news, MongoDB's stock price fell $73.94, or 23.9%, to close at $236.06 per share on May 31, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) MongoDB's sales force restructure, which prioritized reducing friction in the enrollment process, had resulted in complete loss of upfront commitments, a significant reduction in the information gathered by their sales force as to the trajectory for the new Atlas enrollments, and reduced pressure on new enrollments to grow; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired MongoDB securities during the Class Period, you may move the Court no later than September 9, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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