MongoDB, Inc. (NASDAQ: MDB): MongoDB, Inc. (“MongoDB” or the “Company”) has been sued for violations of the federal securities laws. The complaint asserts claims against the Company and certain of its senior executives under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in MongoDB securities between August 31, 2023 and May 30, 2024, inclusive. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Baxter v. MongoDB, No. 24-cv-5191.
 
If you incurred losses on your investments in MongoDB, you are encouraged to submit your information.
 
Why was MongoDB Sued for Securities Fraud?

MongoDB is a software company that sells developer data platforms and integrated services systems. The complaint alleges that during the relevant period, 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.
 
As alleged, these statements were 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.
 
The Stock Declines as the Truth is Revealed

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.

What are my Rights?

If you purchased or otherwise acquired MongoDB securities between August 31, 2023 and May 30, 2024, inclusive, you may ask the Court no later than September 9, 2024, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.

If you incurred losses on your investments in MongoDB, you are encouraged to submit your information.  

You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
 
All representation is on a contingency fee basis.  Shareholders are not responsible for any court costs or expenses of litigation.  The Firm will seek court approval for any potential fees and expenses.

Why Bleichmar Fonti & Auld LLP?

BFA 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. 

Attorney advertising.  Past results do not guarantee future outcomes.