monday.com Faces Class Action Lawsuit Over Alleged Misstatements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy MNDY?
Source: Globenewswire
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against monday.com Ltd., aiming to recover damages for investors who purchased securities between September 17, 2025, and February 6, 2026, highlighting significant investor concerns regarding the company's financial transparency.
- Allegations of Misstatements: The complaint alleges that monday.com made materially false and misleading statements during the relevant period, claiming that its revenue growth outlook was significantly overstated, which has adversely affected investor confidence in the company's future.
- Warning of Slowing Growth: The lawsuit indicates that monday.com is experiencing decelerating growth and reduced expansion momentum, with lengthening sales cycles negatively impacting revenue expansion trends, potentially exposing investors to greater financial risks.
- Investor Rights Protection: The law firm commits to representing investors on a contingency fee basis, meaning they will only charge fees if the claims are successful, ensuring that investors' rights are protected throughout the legal process.
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Analyst Views on MNDY
Wall Street analysts forecast MNDY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 74.730
Low
195.00
Averages
235.58
High
310.00
Current: 74.730
Low
195.00
Averages
235.58
High
310.00
About MNDY
Monday.Com Ltd is an Israel-based company engaged primarily in the software sector. The Company provides cloud-based platform that enables its users to create custom applications and project management software. The platform offers a Work Operating System (Work OS) that provides modular building blocks to create software applications and work management tools. This system is designed to enhance team collaboration and streamline workflows across various business functions, including project management, CRM, marketing, and more. The Company has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev, and Sydney. The Company customize its platform to suit any business vertical and serves customers worldwide.
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 Initiation: Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against monday.com, alleging violations of the Securities Exchange Act of 1934, allowing stock purchasers to seek lead plaintiff status, highlighting investor concerns over corporate transparency.
- False Statement Allegations: The lawsuit claims that monday.com misled investors about its revenue outlook amid core platform expansion and AI investments, while actual customer growth was slowing, making the $1.8 billion 2027 target increasingly unlikely, reflecting significant growth pressures on the company.
- Stock Price Drop Reaction: Following monday.com's announcement on February 9, 2026, that it would no longer discuss its 2027 targets, the stock price plummeted nearly 21%, indicating a substantial loss of market confidence in the company's future prospects, which could impact investor trust and market capitalization.
- Legal Process Explanation: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased monday.com stock during the class period can seek lead plaintiff status, indicating that the legal risks faced by the company may affect its operations and financial health.
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- Lawsuit Background: Kessler Topaz Meltzer & Check, LLP has filed a securities fraud class action against monday.com on behalf of investors who purchased shares between September 17, 2025, and February 6, 2026, raising serious concerns about the company's financial transparency.
- Financial Missteps: On February 9, 2026, monday.com rescinded its $1.8 billion revenue target for 2027 and projected a significant slowdown in growth for 2026, resulting in a stock price drop of 20.8% to $77.63 per share, reflecting market pessimism about its future prospects.
- Investor Action: Affected investors must apply for lead plaintiff status by May 11, 2026, to represent other investors in the lawsuit, emphasizing the proactive role investors can take in protecting their rights.
- Law Firm Background: Kessler Topaz Meltzer & Check, LLP is a prominent law firm specializing in securities fraud class actions, having recovered over $25 billion for clients and represented significant institutional investors, showcasing its strength and influence in the investor protection arena.
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- Class Action Initiation: Rosen Law Firm reminds investors who purchased monday.com (NASDAQ: MNDY) common stock between September 17, 2025, and February 6, 2026, that they must apply to be lead plaintiff by May 11, 2026, or risk losing representation in the class action.
- Transparent Fee Structure: Investors joining the class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, which alleviates financial burdens and encourages more affected investors to participate.
- Lawsuit Context: The lawsuit alleges that monday.com made false or misleading statements regarding its revenue growth outlook, particularly concerning decelerating growth and extended sales cycles, which may have caused investor losses when the truth emerged, indicating a crisis of trust in the company.
- Law Firm's Credentials: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its expertise and resource advantages in handling such cases, prompting investors to carefully select experienced legal counsel.
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- Lawsuit Background: monday.com Ltd. (NASDAQ: MNDY) is facing a securities fraud class action lawsuit for the period between September 17, 2025, and February 6, 2026, with investors having until May 11, 2026, to seek lead plaintiff status, indicating significant legal risks that could impact the company's market reputation and stock price.
- Key Allegations: The lawsuit alleges that the company made materially false statements regarding its financial outlook, particularly failing to disclose decelerating customer growth and inadequate AI investments, which may lead to diminished investor confidence and negatively affect stock performance.
- Stock Price Reaction: Following the release of its 2025 financial results on February 9, 2026, and the retraction of its $1.8 billion 2027 revenue target, monday.com’s stock plummeted by 20.8% to close at $77.63, reflecting market pessimism regarding the company's future prospects.
- Investor Action: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP to discuss their legal rights, indicating that the company's legal challenges may prompt investors to seek compensation, further exacerbating market concerns about its financial health.
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- Driven Brands Lawsuit: Driven Brands Holdings Inc. faces a class action lawsuit for the period from May 2023 to February 2026, alleging that executives failed to disclose significant errors related to the balance sheet, which misled investors about the company's prospects, potentially undermining shareholder confidence and leading to stock price declines.
- monday.com Lawsuit: monday.com Ltd. is implicated in a class action lawsuit covering September 2025 to February 2026, accused of not disclosing decelerating customer growth and extended sales cycles, making its $1.8 billion target for 2027 increasingly unrealistic, which could negatively affect investor expectations for future growth.
- Camping World Lawsuit: Camping World Holdings, Inc. is facing a class action lawsuit for the period from April 2025 to February 2026, with allegations of overstating inventory management capabilities and retail demand, which may adversely impact its gross profit and margins, thereby influencing shareholder investment decisions.
- Trip.com Lawsuit: Trip.com Group Limited is involved in a class action lawsuit from April 2024 to January 2026, accused of failing to disclose regulatory risks stemming from its monopolistic business practices, which could lead to diminished investor confidence in the company's operations and affect its market performance.
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- Stock Price Plunge: On February 9, 2026, monday.com shares plummeted approximately 21%, dropping from $98.00 to $77.63, resulting in a loss of about $20.37 per share, triggered by the company's retraction of its $1.8 billion revenue target for fiscal 2027, causing market panic.
- Lawsuit Background: The lawsuit alleges that the company's management issued materially misleading statements regarding enterprise customer growth and AI monetization timelines between September 17, 2025, and February 6, 2026, exposing institutional investors to potential portfolio-level losses.
- Investor Responsibilities: Institutional investors holding MNDY shares should be aware of potential portfolio losses and evaluate lead plaintiff opportunities before the May 11, 2026 deadline to seek recovery in the lawsuit.
- Market Impact Assessment: The lawsuit claims that during the relevant period, MNDY shares traded at artificially inflated prices, leading to significant losses for investors following corrective disclosures, particularly impacting portfolios with concentrated holdings.
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