monday.com(US:MNDY) Globenewswire·2026-03-18 17:09Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against monday.com Ltd. due to allegations of violations of federal securities laws, particularly regarding misleading statements about the company's revenue growth and performance [4][6]. Company Performance - monday.com disclosed on February 9, 2026, that it faced two significant challenges: ongoing weakness in its "no-touch" performance marketing channel for small and medium businesses and a foreign exchange drag of 100-200 basis points due to the appreciation of the Israeli shekel [7]. - The company is increasing its investment in AI products, which has led to a forecasted decline in gross margins from 90% to the mid-to-high 80s for FY2026, partly due to AI infrastructure costs [7]. - Research and Development (R&D) spending rose from 17% to 19% of revenue in FY2025, with management projecting mid-teens percentage headcount growth in FY2026, focusing on sales and R&D [7]. Stock Market Reaction - Following the earnings call on February 9, 2026, monday.com's stock price fell by $20.37, or 20.78%, closing at $77.63 per share [8]. Legal Proceedings - Investors who purchased or acquired securities in monday.com between September 17, 2025, and February 6, 2026, are encouraged to contact Faruqi & Faruqi to discuss their legal rights, with a deadline of May 11, 2026, to seek the role of lead plaintiff in the class action [4][9]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought by the class, who will oversee the litigation on behalf of the class members [9]. Additional Information - Faruqi & Faruqi, LLP has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [5]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding monday.com's conduct [10].