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MDB.US
id: 1281

MongoDB (MDB) Sales Strategy Problems Case

S.D. New York
Court
1:24-cv-05191
Case number
31 Aug 2023
Class period Start
30 May 2024
Class period End
09 Sept 2024
Lead Plaintiff motion deadline
  • $MDB stockholder filed a claim against MongoDB for misleading about its growth, hiding economic risks, and weak enrollments.
  • After disappointing financial results on May 30, 2024, $MDB fell nearly 24%.
  • MongoDB investors can join this case to be notified about potential recovery.
Case Details:

On March 7, 2024, MongoDB announced near-zero revenue expectations from unused Atlas commitments in fiscal year 2025, resulting in a $40M revenue decrease due to changes in sales incentives aimed at simplifying enrollment.

On this news, $MDB fell nearly 7%.

Then, on May 30, 2024, the company reduced its fiscal year 2025 growth expectations due to changes in sales incentives and unexpected economic challenges.

Due to this news, $MDB fell almost 24%.

Based on these events, a $MDB stockholder filed a claim against MongoDB and its leaders, accusing them of the following:
  • MongoDB falsely claimed to have reliable info on MongoDB's revenue and growth, downplaying risks.
  • In reality, economic conditions worsened, and a sales incentive restructure led to less data and lower-value Atlas enrollments.
Considering all the representations, investors have reasons to suspect that MongoDB misled about its growth, hiding economic risks and weak enrollments.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
30 May 2024
Lead Plaintiff Deadline
09 September 2024
Collecting participants…

MongoDB

MongoDB, Inc., together with its subsidiaries, provides general purpose database platform worldwide. The company provides MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; MongoDB...

    Ticker
    MDB.US
    ISIN
    US60937P1066
    CIK
    1441816
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    1633 Broadway, New York, NY, United States, 10019