monday.com Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy MNDY?
Source: Globenewswire
- 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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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: 72.370
Low
195.00
Averages
235.58
High
310.00
Current: 72.370
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.
- Lawsuit Background: monday.com Ltd. (NASDAQ: MNDY) is facing a class action lawsuit for securities fraud covering the period from September 17, 2025, to 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 shareholder confidence.
- 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 investors to misjudge the company's future profitability, thereby affecting its stock performance.
- Stock Price Reaction: Following the February 9, 2026, earnings report, monday.com rescinded its $1.8 billion 2027 revenue target, resulting in a 20.8% drop in stock price to $77.63 per share, reflecting strong market concerns regarding the company's growth prospects.
- Legal Action Recommendations: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP for a free case evaluation, indicating that the company's potential financial liabilities from legal issues may have long-term operational impacts.
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- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against monday.com, alleging securities fraud and unlawful business practices by the company and certain officers, with investors urged to apply as Lead Plaintiff by May 11, 2026, highlighting serious governance concerns.
- Significant Stock Drop: Following the release of its Q3 2025 financial results and a weaker Q4 guidance on November 10, 2025, monday.com’s stock plummeted by 12.33%, or $23.38 per share, closing at $166.21, reflecting market disappointment in the company's future performance.
- Weak 2026 Outlook: On February 9, 2026, monday.com reported its Q4 and FY 2025 results, issuing a weaker 2026 guidance and abandoning its long-term revenue target of $1.8 billion for 2027, leading to a further stock decline of 20.79%, closing at $77.63, indicating risks associated with the company's strategic shift.
- Legal Firm's Reputation: Pomerantz LLP, a premier firm in corporate and securities class litigation with over 85 years of experience, has recovered multimillion-dollar damages for victims of securities fraud, suggesting that the lawsuit could have profound implications for monday.com’s reputation and financial health.
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- Class Action Notification: The Schall Law Firm reminds investors of a class action lawsuit against monday.com for violations of securities laws, involving securities purchased between September 17, 2025, and February 6, 2026, with a deadline for participation set for May 11, 2026.
- False Statement Allegations: The lawsuit alleges that monday.com made false and misleading statements regarding its financial outlook and growth potential, resulting in investor losses when the truth about decelerating customer growth was revealed, highlighting significant operational weaknesses.
- Legal Consultation Opportunity: Affected investors are encouraged to contact the Schall Law Firm for a free consultation regarding their rights, as the firm specializes in securities class action lawsuits, demonstrating a commitment to protecting investor interests and recovering losses.
- Lawsuit Status: The class action has not yet been certified, meaning investors are not represented by an attorney until certification occurs, underscoring the importance of taking action to safeguard their rights in this legal matter.
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- Lawsuit Background: Robbins Geller Rudman & Dowd LLP announces a class action lawsuit against monday.com, alleging violations of the Securities Exchange Act of 1934, potentially impacting purchasers or acquirers of monday.com stock who may have suffered significant losses.
- False Statement Allegations: The lawsuit claims that monday.com made false and/or misleading statements throughout the class period, failing to disclose the true state of its revenue outlook and decelerating customer growth, misleading investors about its future growth prospects.
- Stock Price Impact: 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 heightened market concerns regarding its future performance.
- Investor Rights: Under the Private Securities Litigation Reform Act of 1995, any investor who purchased monday.com stock during the class period can seek to be appointed as lead plaintiff, representing the interests of other shareholders in the lawsuit to ensure their rights are protected.
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- Class Action Notice: 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, to participate in the class action without any out-of-pocket fees.
- Lawsuit Background: The lawsuit alleges that monday.com made false or misleading statements regarding its revenue growth outlook, resulting in investor losses when the true situation was revealed, highlighting significant deceleration in expansion momentum and extended sales cycles.
- Law Firm Advantages: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its successful track record and extensive experience, which investors should consider when selecting legal counsel.
- Investor Rights: Investors can choose to remain absent or hire counsel, and participation in the class action is not contingent on being a lead plaintiff, ensuring that all affected investors have the opportunity to share in any potential future recovery.
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- Class Action Filed: Bronstein, Gewirtz & Grossman, LLC has initiated a class action lawsuit against monday.com, 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 Misrepresentation: The complaint alleges that monday.com made materially false and misleading statements during the relevant period, failing to disclose that its revenue growth outlook was significantly overstated, which has adversely affected investor confidence in the company's future.
- Growth Deceleration Risks: The lawsuit indicates that monday.com is experiencing decelerating growth and reduced expansion momentum, with lengthening sales cycles negatively impacting revenue trends, potentially exposing investors to greater financial risks.
- Investor Recourse Opportunity: Affected investors have until May 11, 2026, to request lead plaintiff status, with Bronstein, Gewirtz & Grossman, LLC offering risk-free legal representation, underscoring the firm's commitment to protecting investor rights and interests.
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