MDB INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that MongoDB, Inc. Investors with Substantial Losses Have Opportunity to Lead the MongoDB Class Action Lawsuit

Core Viewpoint - The MongoDB class action lawsuit alleges that the company and its executives made misleading statements regarding revenue projections and growth expectations, leading to significant stock price declines following the announcement of reduced growth expectations and revenue losses [2][3][8]. Group 1: Allegations of Misleading Statements - The lawsuit claims that MongoDB created a false impression of having reliable information about its revenue outlook while downplaying risks from seasonality and macroeconomic factors [2]. - It is alleged that the restructuring of the sales force incentives led to a decrease in the quality of information regarding new Atlas enrollments, resulting in lower value enrollments compared to the previous incentive structure [2]. - The defendants are accused of providing materially flawed statements of confidence and growth projections that did not consider the worsening macroeconomic conditions [2]. Group 2: Impact of Announcements on Stock Price - On May 30, 2024, MongoDB announced significantly reduced growth expectations for fiscal year 2025, attributing the losses to changes in the sales incentive structure and unexpected macro headwinds, causing the stock price to drop nearly 24% [3]. - On March 7, 2024, the company reported an anticipated near-zero revenue from unused Atlas commitments, a decrease of approximately $40 million, which also led to a nearly 7% decline in stock price [8]. Group 3: Class Action Details - The class action lawsuit is titled Baxter v. MongoDB, Inc., and covers purchasers of MongoDB securities from August 31, 2023, to May 30, 2024, with a deadline of September 9, 2024, for seeking lead plaintiff status [6]. - The lawsuit charges MongoDB and its executives with violations of the Securities Exchange Act of 1934 [6].