Class Action Lawsuit Filed Against Globant S.A. Over Misleading Statements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: PRnewswire
Globant S.A. shares fell 3.08% and hit a 52-week low amid ongoing legal troubles.
A class action lawsuit has been initiated against Globant S.A. by Bernstein Liebhard LLP, representing investors who purchased shares between February 15, 2024, and August 14, 2025. The lawsuit alleges that the company made misleading statements regarding its operations in Latin America, which may have led to significant investor losses. The allegations include failure to disclose operational turmoil and wage freezes in Argentina and Mexico, which contradict claims of a thriving business in the region.
The implications of this lawsuit could be severe for Globant, as it not only raises concerns about the company's transparency and governance but also highlights potential operational issues that could further impact investor confidence and stock performance.
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Analyst Views on GLOB
Wall Street analysts forecast GLOB stock price to rise
13 Analyst Rating
5 Buy
8 Hold
0 Sell
Moderate Buy
Current: 29.970
Low
61.00
Averages
76.36
High
100.00
Current: 29.970
Low
61.00
Averages
76.36
High
100.00
About GLOB
Globant S.A. is a digitally native technology services company. The Company’s principal operating subsidiary is based in Buenos Aires, Argentina. During the year ended December 31, 2015, 83.7% of its revenues were generated by clients in North America, 11.0% in Latin America and Asia, and 5.3% in Europe. It builds digital journeys, which consists of different software products, including mobile apps, Web apps, sensors and other software and hardware appliances that work orchestrated by a backend that uses big data and fast data to create a understanding of each consumer and how to act upon each scenario. The Company delivers digital journeys with a comprehensive approach that includes Stay Relevant, which helps its customers stay fit for the future of their industries; Discover, which think and conceive specific digital journeys for each customer; Build, which creates each digital journey leveraging the work of its Studios, its services over platforms and its agile pods methodologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Class Action Lawsuit Filed Against Globant SA
- Class Action Initiated: Pomerantz LLP has announced a class action lawsuit against Globant SA, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by June 23, 2026.
- Declining Latin American Revenue: Globant reported a 1.3% decrease in Latin American revenue for Q4 2024, prompting a cautious outlook for Q1 2025, as CEO highlighted challenges due to political turmoil in the region.
- Stock Price Volatility: Following disappointing financial results and adverse market conditions, Globant's stock price plummeted by 27.81% on February 21, 2025, and 23.61% on May 16, 2025, indicating investor concerns over future growth prospects.
- Increased Restructuring Costs: In Q2 2025, Globant reported a 2% workforce reduction and incurred a $47.6 million restructuring charge, raising further doubts about its financial health and leading to an additional 14.93% drop in stock price.
See More
Notice to Shareholders of Globant S.A. Regarding Class Action
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased Globant S.A. (NYSE:GLOB) shares between February 15, 2024, and August 14, 2025, to contact them regarding potential lead plaintiff appointment, indicating significant legal risks for the company.
- Allegations: The filed complaint claims that Globant failed to disclose turmoil in its Latin American operations by misleadingly stating the region was 'particularly beneficial,' while in reality, demand was decreasing, leading to wage freezes in Argentina and Mexico that negatively impacted employee morale.
- Market Impact: The reduction and cancellation of projects by Latin American clients have severely affected Globant's market outlook, particularly as the depreciation of the Argentine currency compounded the wage freezes, effectively resulting in wage cuts and exacerbating operational challenges.
- Shareholder Action: Shareholders must register by June 23, 2026, to participate in the lawsuit, and upon registration, they will receive updates on the case's progress, reflecting the company's commitment to transparency and shareholder rights.
See More
Class Action Notice for Globant SA Investors
- Class Action Initiation: The Portnoy Law Firm advises Globant SA investors of a class action for those who purchased securities between February 15, 2024, and August 14, 2025, with a deadline for lead plaintiff motions set for June 23, 2026, indicating the urgency of legal action.
- Failed Strategic Pivot: Despite Globant's announcement of a $1 billion strategic pivot to enhance its Latin American business in mid-2023, the company faced severe issues such as declining service demand, client defections, and project cancellations, undermining investor confidence in its future prospects.
- Employee Turmoil: The freezing of employee wages in Mexico and Argentina exacerbated the challenges faced by Globant's Latin American operations, leading to widespread employee dissatisfaction and further degrading client service quality, highlighting significant internal management flaws.
- Stock Price Plunge: Following the mixed Q2 2025 results disclosed on August 14, 2025, which included a 2% workforce reduction (approximately 1,000 employees) and a $47.6 million restructuring charge, Globant's stock price plummeted from $78.12 to $66.46, reflecting the market's pessimistic outlook on the company's future.
See More
Multiple Companies Face Class Action Lawsuits
- LKQ Corporation Lawsuit: LKQ Corporation is facing a class action lawsuit for failing to disclose significant risks regarding customer losses and declining market share during the period from February 27, 2023, to July 23, 2025, with a lead plaintiff deadline of June 22, 2026, potentially impacting the company's reputation and stock price.
- Regencell Bioscience Lawsuit: Regencell Bioscience Holdings Limited is accused of failing to disclose market manipulation risks from October 28, 2024, to October 31, 2025, exposing investors to significant financial risks, with a lead plaintiff deadline of June 23, 2026, which may trigger regulatory scrutiny.
- Globant S.A. Lawsuit: Globant S.A. is under scrutiny for not disclosing decreasing demand and project cancellations in Latin America from February 15, 2024, to August 14, 2025, leading to investor losses, with a lead plaintiff deadline of June 23, 2026, which could negatively affect future performance.
- Legal Consultation Reminder: The Law Offices of Frank R. Cruz remind investors that they can contact the firm to discuss their legal rights if they suffered losses during the specified periods, which may influence their legal options and subsequent actions.
See More
Reminder of Class Action for Globant S.A. Stockholders
- Class Action Notice: Rosen Law Firm reminds investors who purchased Globant S.A. (NYSE: GLOB) common stock between February 15, 2024, and August 14, 2025, to apply as lead plaintiffs by June 23, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: In mid-2023, Globant announced a $1 billion strategic pivot to enhance its Latin American business; however, the lawsuit claims that the company faced severe issues such as declining demand, client defections, and project cancellations, leading to investor losses contrary to the company's claims.
- Employee Conditions Deteriorate: Globant's decision to freeze wages for employees in Latin America exacerbated turmoil among staff and degraded client service quality, highlighting a stark contrast between the company's proclaimed market leadership and its operational struggles in the region.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked number one for the number of securities class action settlements in 2017, demonstrating its extensive experience and success in this field.
See More
Faruqi & Faruqi Investigates Globant Securities Fraud Claims
- Legal Investigation Launched: Faruq & Faruqi LLP is investigating potential securities fraud claims against Globant S.A., particularly concerning false statements about its Latin American operations, which may have caused losses for investors between February 15, 2024, and August 14, 2025.
- Stock Price Plunge: On August 14, 2025, Globant disclosed the true state of its Latin American business, announcing a 2% workforce reduction (approximately 1,000 employees) and a $47.6 million restructuring charge, leading to a significant drop in stock price from $78.12 to $66.46 in a single day.
- Investor Rights Protection: Faruqi & Faruqi reminds investors that June 23, 2026, is the deadline to apply for lead plaintiff status in the federal securities class action, where the lead plaintiff will oversee the litigation to protect the interests of class members.
- Information Solicitation: The law firm encourages anyone with knowledge of Globant's conduct, including former employees and whistleblowers, to come forward to provide additional information that could assist affected investors in seeking legal remedies.
See More
Class Action Lawsuit Filed Against Globant SA
- Class Action Initiated: Pomerantz LLP has announced a class action lawsuit against Globant SA, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by June 23, 2026.
- Declining Latin American Revenue: Globant reported a 1.3% decrease in Latin American revenue for Q4 2024, prompting a cautious outlook for Q1 2025, as CEO highlighted challenges due to political turmoil in the region.
- Stock Price Volatility: Following disappointing financial results and adverse market conditions, Globant's stock price plummeted by 27.81% on February 21, 2025, and 23.61% on May 16, 2025, indicating investor concerns over future growth prospects.
- Increased Restructuring Costs: In Q2 2025, Globant reported a 2% workforce reduction and incurred a $47.6 million restructuring charge, raising further doubts about its financial health and leading to an additional 14.93% drop in stock price.
See More
Notice to Shareholders of Globant S.A. Regarding Class Action
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased Globant S.A. (NYSE:GLOB) shares between February 15, 2024, and August 14, 2025, to contact them regarding potential lead plaintiff appointment, indicating significant legal risks for the company.
- Allegations: The filed complaint claims that Globant failed to disclose turmoil in its Latin American operations by misleadingly stating the region was 'particularly beneficial,' while in reality, demand was decreasing, leading to wage freezes in Argentina and Mexico that negatively impacted employee morale.
- Market Impact: The reduction and cancellation of projects by Latin American clients have severely affected Globant's market outlook, particularly as the depreciation of the Argentine currency compounded the wage freezes, effectively resulting in wage cuts and exacerbating operational challenges.
- Shareholder Action: Shareholders must register by June 23, 2026, to participate in the lawsuit, and upon registration, they will receive updates on the case's progress, reflecting the company's commitment to transparency and shareholder rights.
See More
Class Action Notice for Globant SA Investors
- Class Action Initiation: The Portnoy Law Firm advises Globant SA investors of a class action for those who purchased securities between February 15, 2024, and August 14, 2025, with a deadline for lead plaintiff motions set for June 23, 2026, indicating the urgency of legal action.
- Failed Strategic Pivot: Despite Globant's announcement of a $1 billion strategic pivot to enhance its Latin American business in mid-2023, the company faced severe issues such as declining service demand, client defections, and project cancellations, undermining investor confidence in its future prospects.
- Employee Turmoil: The freezing of employee wages in Mexico and Argentina exacerbated the challenges faced by Globant's Latin American operations, leading to widespread employee dissatisfaction and further degrading client service quality, highlighting significant internal management flaws.
- Stock Price Plunge: Following the mixed Q2 2025 results disclosed on August 14, 2025, which included a 2% workforce reduction (approximately 1,000 employees) and a $47.6 million restructuring charge, Globant's stock price plummeted from $78.12 to $66.46, reflecting the market's pessimistic outlook on the company's future.
See More
Multiple Companies Face Class Action Lawsuits
- LKQ Corporation Lawsuit: LKQ Corporation is facing a class action lawsuit for failing to disclose significant risks regarding customer losses and declining market share during the period from February 27, 2023, to July 23, 2025, with a lead plaintiff deadline of June 22, 2026, potentially impacting the company's reputation and stock price.
- Regencell Bioscience Lawsuit: Regencell Bioscience Holdings Limited is accused of failing to disclose market manipulation risks from October 28, 2024, to October 31, 2025, exposing investors to significant financial risks, with a lead plaintiff deadline of June 23, 2026, which may trigger regulatory scrutiny.
- Globant S.A. Lawsuit: Globant S.A. is under scrutiny for not disclosing decreasing demand and project cancellations in Latin America from February 15, 2024, to August 14, 2025, leading to investor losses, with a lead plaintiff deadline of June 23, 2026, which could negatively affect future performance.
- Legal Consultation Reminder: The Law Offices of Frank R. Cruz remind investors that they can contact the firm to discuss their legal rights if they suffered losses during the specified periods, which may influence their legal options and subsequent actions.
See More
Reminder of Class Action for Globant S.A. Stockholders
- Class Action Notice: Rosen Law Firm reminds investors who purchased Globant S.A. (NYSE: GLOB) common stock between February 15, 2024, and August 14, 2025, to apply as lead plaintiffs by June 23, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: In mid-2023, Globant announced a $1 billion strategic pivot to enhance its Latin American business; however, the lawsuit claims that the company faced severe issues such as declining demand, client defections, and project cancellations, leading to investor losses contrary to the company's claims.
- Employee Conditions Deteriorate: Globant's decision to freeze wages for employees in Latin America exacerbated turmoil among staff and degraded client service quality, highlighting a stark contrast between the company's proclaimed market leadership and its operational struggles in the region.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and was ranked number one for the number of securities class action settlements in 2017, demonstrating its extensive experience and success in this field.
See More
Faruqi & Faruqi Investigates Globant Securities Fraud Claims
- Legal Investigation Launched: Faruq & Faruqi LLP is investigating potential securities fraud claims against Globant S.A., particularly concerning false statements about its Latin American operations, which may have caused losses for investors between February 15, 2024, and August 14, 2025.
- Stock Price Plunge: On August 14, 2025, Globant disclosed the true state of its Latin American business, announcing a 2% workforce reduction (approximately 1,000 employees) and a $47.6 million restructuring charge, leading to a significant drop in stock price from $78.12 to $66.46 in a single day.
- Investor Rights Protection: Faruqi & Faruqi reminds investors that June 23, 2026, is the deadline to apply for lead plaintiff status in the federal securities class action, where the lead plaintiff will oversee the litigation to protect the interests of class members.
- Information Solicitation: The law firm encourages anyone with knowledge of Globant's conduct, including former employees and whistleblowers, to come forward to provide additional information that could assist affected investors in seeking legal remedies.
See More
