Key Takeaways:
A securities fraud class-action lawsuit has been filed against monday.com Ltd. (NASDAQ: MNDY) on behalf of investors who purchased stock between September 17, 2025, and February 6, 2026, following the company’s abrupt withdrawal of its long-term revenue forecast.
"The gap between what monday.com projected in September and what it disclosed in February raises important questions about what was known and when," Joseph E. Levi of Levi & Korsinsky, LLP, said in a statement. The lawsuit alleges the company made materially false and misleading statements about its growth trajectory.
At an investor day on September 17, 2025, monday.com projected it would reach $1.8 billion in revenue by fiscal year 2027, calling it a "base case." However, on February 9, 2026, the company abandoned that target and issued fiscal 2026 revenue guidance of $1.452 billion to $1.462 billion. This new guidance represents 18% to 19% year-over-year growth, a significant slowdown from the 27% growth reported for fiscal 2025.
The disclosure caused monday.com’s stock to collapse by 21%, falling from $98.00 to $77.63 on February 9. The drop erased over $20 per share in value and contributed to a cumulative decline of approximately 59% from its November 10, 2025 high of $189.59.
The complaint contends that when monday.com issued its ambitious $1.8 billion target, it was already aware of and failing to disclose underlying weaknesses, including decelerating new customer growth, reduced expansion within existing accounts, and lengthening enterprise sales cycles. The company attributed the revised guidance to "choppiness in the no-touch demand environment" and longer sales cycles.
Multiple law firms, including Rosen Law Firm and Bronstein, Gewirtz & Grossman, have reminded investors of the May 11, 2026, lead plaintiff deadline.
The lawsuit seeks to recover damages for investors who suffered losses due to the allegedly false and misleading statements. The outcome will test the accuracy of the company's previous disclosures, with investors watching the May 11 deadline as the next key date in the legal proceedings.
This article is for informational purposes only and does not constitute investment advice.
