SAN FRANCISCO, Sept. 01, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges MongoDB, Inc. (NASDAQ: MDB) investors who suffered substantial losses to submit your losses now.
Class Period: Aug. 31, 2023 – May 30, 2024
Lead Plaintiff Deadline: Sept. 9, 2024
Visit: www.hbsslaw.com/investor-fraud/mdb
Contact the Firm Now: MDB@hbsslaw.com
844-916-0895
Class Action Lawsuit Against MongoDB, Inc. (MDB):
MongoDB Inc., a provider of document-database software, now faces an investor class action after revising its fiscal year 2025 revenue guidance twice in recent months.
Previously, MongoDB management expressed confidence in its ability to achieve its FY 2025 revenue targets. This confidence stemmed from initiatives such as restructuring sales force incentives and reducing pressure on upfront customer commitments. Additionally, management emphasized efforts to mitigate risks associated with seasonal trends and broader economic factors.
However, on March 7, 2024, MongoDB surprised investors with a downward revision of its full-year guidance. The company attributed the decrease to a restructuring of its sales force compensation model, which it said led to a decline in upfront customer commitments and revenue from multi-year licensing deals. Notably, management acknowledged this change could have resulted in higher guidance if sales capacity had not been impacted. This news led to a significant decline in MongoDB’s stock price.
Despite these revisions, management maintained its view that the overall business environment for FY 2025 would be similar to the previous year.
Then, on May 30, 2024, MongoDB further revised its FY 2025 guidance downward. This time, the company cited macroeconomic factors affecting customer adoption of its MongoDB Atlas product, along with the ongoing impact of the sales force restructuring. These disclosures resulted in another substantial drop in the company’s share price.
The cumulative effect of these revisions has eroded shareholder value by an estimated $7.5 billion.
Investors have now brought suit against MongoDB and its most senior executives alleging they gave 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 complaint alleges that when making these statements, executives knew that macro headwinds were worsening and that MongoDB’s sales force incentive restructure were reducing new enrollments.
“We’re investigating whether MongoDB may have downplayed known risks posed by its sales incentive restructure and macroeconomic factors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in MongoDB and have substantial losses submit your losses now »
If you’d like more information and answers to frequently asked questions about the MongoDB case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
