SAN DIEGO, Aug. 02, 2024 (GLOBE NEWSWIRE) — Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of MongoDB, Inc. (NASDAQ: MDB).
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CLASS PERIOD: August 31, 2023 – May 30, 2024
LEAD PLAINTIFF DEADLINE: September 9, 2024
DOCKET #: 24-CV-05191
ALLEGATIONS: Materially false and misleading statements
Contact for More Information: James Baker, (619) 814-4471, jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
The complaint alleges Defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning related to MongoDB’s sales force incentive restructure, including: a significant reduction in the information gathered by their sales force as to the trajectory for the new Atlas enrollments without upfront commitments; reduced pressure on new enrollments to grow; and a significant loss of revenue from unused commitments. Such statements absent these material facts caused Plaintiff and other shareholders to purchase MongoDB’s securities at artificially inflated prices.
However, Investors began to question the veracity of Defendants’ public statements on March 7, 2024, during MongoDB’s earnings call following a same day press release announcing its fiscal year 2024 earnings. In pertinent part, Defendants announced an anticipated near zero revenue from unused Atlas commitments in fiscal year 2025, a decrease of approximately $40 million in revenue, attributed to the Company’s decision to change their sales incentive structure to reduce enrollment 3 frictions. Additionally, MongoDB provided estimated growth for the fiscal year 2025 (ending January 31, 2025). In particular, Defendants projected only 14% growth, compared to projected 16% for the previous year which had resulted in an actualized 31% growth.
The Complaint alleges that during the Class Period, Defendants made materially false and misleading statements and engaged in a scheme to deceive the market and a course of conduct that artificially inflated the price of MongoDB’s common stock and operated as a fraud or deceit on Class Period purchasers of MongoDB’s common stock by materially misleading the investing public.
Investor Action Steps: Shareholders who incurred losses during the class period, have until September 9, 2024, to move the court to become a lead plaintiff in this action. A lead plaintiff will act on behalf of all other class members in directing the class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor’s ability to share any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
About Johnson Fistel, LLP | Top Law Firm, Securities Fraud, Investors Rights:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. We also extend our services to foreign investors who have purchased on US exchanges. Stay updated with news on stock drops and learn how Johnson Fistel, LLP can help you recover your losses. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Contact:
Johnson Fistel, LLP
501 W. Broadway, Suite 800, San Diego, CA 92101
James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
