monday.com Sued for Misleading Investors on Growth Projections

Edgen Stock·Mar 16 2026, 16:51

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Key Takeaways

monday.com (MNDY) is facing multiple class-action lawsuits alleging the company misled investors about its growth prospects between September 2025 and February 2026. Law firms, including Rosen Law Firm and the Law Offices of Frank R. Cruz, are soliciting shareholders who suffered losses, citing concealed facts about slowing customer acquisition and expansion that undermined the company's financial targets.

Securities Fraud Alleged: Multiple law firms have filed class-action lawsuits against monday.com for alleged securities fraud during the class period of September 17, 2025, to February 6, 2026.
Growth Outlook Questioned: The lawsuits claim monday.com concealed decelerating customer growth and longer sales cycles, which made its $1.5 billion 2025 revenue target increasingly unlikely.
Investor Deadline Set: Shareholders who purchased stock during the class period and wish to serve as lead plaintiff must file a motion with the court no later than May 11, 2026.

Lawsuits Allege Misleading Projections From Sept. 2025 to Feb. 2026

monday.com (NASDAQ: MNDY) is the target of a securities fraud class-action lawsuit, with multiple law firms encouraging shareholders to join the litigation. On March 11, 2026, Rosen Law Firm announced it had filed a suit on behalf of investors who purchased common stock between September 17, 2025, and February 6, 2026. The Law Offices of Frank R. Cruz echoed this effort with its own alert on March 16, 2026. Investors seeking to act as lead plaintiff in the case have until May 11, 2026, to file a motion with the court.

Growth Deceleration Made $1.5B Target Unlikely, Suit Claims

The central allegation is that monday.com's leadership made false or misleading statements and failed to disclose material adverse facts about the company's business operations and prospects. According to the lawsuit, the company concealed a significant slowdown in its growth engine. Key issues allegedly hidden from investors include decelerating new customer growth, weaker expansion within existing accounts, and extended enterprise sales cycles. These factors combined to make monday.com’s stated $1.5 billion revenue target for 2025 increasingly improbable. The suit claims that when the true state of the company's growth momentum entered the market, investors suffered damages.

Legal Action Puts Shareholders on Notice

The lawsuits create significant legal and financial risk for the company, prompting a reevaluation among investors. The public calls from law firms are designed to rally shareholders who purchased stock during the specified five-month period and subsequently incurred losses. The litigation could lead to heightened stock volatility for MNDY and attract interest from short-sellers. Existing shareholders must now weigh the potential impact of a protracted legal battle and any financial compensation that might result from it.