Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF continues its investigation into MongoDB, Inc. (NasdaqGM: MDB).
According to a securities class action complaint filed against the Company, in the first quarter of fiscal year 2024, in an effort to sustain MongoDB’s rapid growth, the Company implemented a new go-to-market strategy that eliminated sales incentives for obtaining one-year commitments from customers. The complaint alleges that this change created the illusion of sustainable growth by boosting short-term customer and workload acquisitions that had little long-term growth potential, because less information about customers’ prospective consumption was gathered during contract negotiations. Then, on May 30, 2024, despite the Company’s allegedly positive statements about its growth prospects, MongoDB released its first quarter fiscal year 2025 results and lowered its fiscal year 2025 guidance, admitting that it had “lost some focus on workload growth potential” and that workloads acquired in fiscal year 2024 were growing more slowly than expected.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the Court presiding over the case denied the defendants’ motion to dismiss the case in part, allowing the case to continue.
KSF’s investigation is focusing on whether MongoDB’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of MongoDB shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-538-3606 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nasdaqgm-mdb/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms – According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
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