| COMPANY |
MongoDB, Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
24-cv-05191 |
| JUDGE |
The Hon. Gregory Howard Woods III |
| CLASS PERIOD |
August 31, 2023 through May 30, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS SEPTEMBER 9, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
MongoDB, a software company, has two core offerings: its original localized MongoDB platform which incorporates a physical MongoDB server, coined “MongoDB Enterprise Advanced”, and its cloud-based alternative, MongoDB Atlas (“Atlas”). The Class Period begins on August 31, 2023, when, after the market closed, Defendants held an earnings call to discuss second quarter fiscal year 2024 results. During the call, Defendant Ittycheria discussed details of MongoDB’s new sales incentive plan. Defendant Gordon further detailed the impact of this change and other factors on MongoDB’s projected growth, emphasizing revenue increases despite the loss of upfront revenue from commitments to the Atlas product. During the question and answer portion of the call, Defendant Gordon continued to downplay the risks associated with the plan to reduce upfront commitments in the Atlas product.
On March 7, 2024, MongoDB announced that due to sales restructuring, the company experienced an annual decrease of approximately $40 million in multiyear license revenue and anticipated near-zero revenue from unused Atlas commitments in fiscal year 2025. MongoDB also provided a disappointing revenue growth forecast that trailed that of the prior year. Following this news, 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, MongoDB disclosed significantly reduced growth expectations, cutting fiscal year 2025 growth projections further and again attributing the losses to 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.
The complaint alleges that, throughout the Class Period, Defendants misrepresented the purported benefits stemming from the restructuring of MongoDB’s sales force, including how the restructuring helped reduce friction in acquiring new customers and increased new workload acquisition among existing customers. Specifically, the complaint alleges that these statements were materially false and misleading and that 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.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.