LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that 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”). MongoDB investors have until September 9, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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.
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If you purchased MongoDB securities during the Class Period, you may move the Court no later than September 9, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased MongoDB securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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