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MDB INVESTOR UPDATE: MongoDB, Inc. Investors are Notified of Upcoming September 9 Securities Fraud Deadline Contact BFA Law if You Lost Money (Nasdaq:MDB)
Globe Newswire 24-Aug-2024 6:02 AM
NEW YORK, Aug. 24, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces a lawsuit has been filed against MongoDB, Inc. ("MongoDB" or the "Company") (NASDAQ:MDB) and certain of the Company's senior executives.
Investors have until September 9, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in MongoDB securities. The case is pending in the U.S. District Court for the Southern District of New York and is captioned John Baxter v. MongoDB, Inc., et al., No. 1:24-cv-05191.
What is the Lawsuit About?
The complaint alleges that the Company misrepresented the purported benefits stemming from the restructuring of its sales force. This includes how the restructuring helped reduce friction in acquiring new customers and increased new workload acquisition among existing customers.
These statements were allegedly materially false and misleading. In truth, MongoDB's sales force restructuring resulted in a near total loss of upfront customer commitments, a significant reduction in actionable information gathered by the sales force, and hindered enrollment and revenue growth.
On March 7, 2024, the Company allegedly announced that due to the sales restructuring, it experienced an annual decrease of approximately $40 million in multiyear license revenue, anticipated near zero revenue from unused Atlas commitments (one of its core offerings) in fiscal year 2025, and provided a disappointing revenue growth forecast that trailed that of the prior year. This news caused the price of MongoDB stock to decline $28.59 per share, or about 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 cutting fiscal year 2025 growth projections further, again attributing the losses to the sales force restructuring. On this news, the price of MongoDB stock declined $73.94 per share, or nearly 24%, from $310.00 per share on May 30, 2024, to $236.06 per share on May 31, 2024.
If you 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 fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information:
Or contact us at: Ross Shikowitz ross@bfalaw.com 212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
