The Red Flags: What Globant Insiders Allegedly Knew About Latin America’s Deterioration Before Shareholders Did — A $143.71 Per-Share Loss Story
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NEW YORK, May 13, 2026 — Wage freezes across Mexico and Argentina. Client defections in Brazil. Project cancellations spreading through the region. According to the lawsuit, Globant’s senior leadership knew its $1 billion Latin American pivot was unraveling for quarters before shareholders received any warning. The concealment allegedly cost investors $143.71 per share.
Submit your information to recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Globant S.A. (NYSE: GLOB) shares fell from $210.17 to $66.46 across three successive corrective disclosures between February and August 2025 that stripped away what the action contends was artificial inflation built on concealed operational failures. The lead plaintiff deadline is June 23, 2026.
What They Allegedly Knew
The securities action contends that by late 2023, Globant’s leadership was already aware of severe problems undermining the Company’s Latin American strategy. Employee wages in Mexico and Argentina were frozen despite double-digit inflation in both countries, effectively cutting worker compensation and triggering widespread unrest. The Computer Trade Association formally petitioned the CEO for urgent salary increases, but as alleged, received no response. Workers who attempted to organize were allegedly terminated.
At the same time, the complaint asserts, Globant’s high-profile Iteris acquisition in Brazil was failing. Former Iteris clients reportedly left because of Globant’s elevated hourly rates, and Iteris employees never received promised salary and benefit increases intended to match legacy Globant compensation.
The Red Flags That Emerged
● In late 2023, Globant froze wages across Argentina and Mexico while publicly describing the region as “particularly beneficial” and touting its status as “employer of choice”
● The Iteris integration in Brazil produced client defections and quality degradation, yet the Company publicly described Brazil as a region where it was “betting high on keeping our leadership”
● By mid-2024, Globant was quietly reducing team members on Latin American projects to retain clients, while publicly claiming demand was “very, very high” and that it was “continu[ing] hiring”
● In October 2024, an employee was allegedly fired for creating a WhatsApp group to discuss wages, suggesting internal suppression of dissent about compensation practices
● Headcount had been declining “for a number of quarters” before the Company disclosed this reality in August 2025
Inside Knowledge vs. Public Statements
The gap between internal reality and public messaging widened throughout 2024, the action contends. On the May 2024 earnings call, management described Latin America’s IT sector as poised for 11% growth and characterized Globant as “the only global tech player from here.” By August 2024, the COO stated demand remained “very, very high” and that hiring was continuing across multiple countries.
Plaintiffs assert these representations were made while the Company’s internal operations told a different story: declining demand, contract cancellations, a deteriorating workforce, and an acquisition that had failed to deliver.
“The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public,” stated Joseph E. Levi, Esq.
What Investors Were Not Told
The lawsuit maintains that investors were denied critical information during the Class Period, including: the scope of wage freezes and their corrosive effect on employee retention and service quality; the extent of client defections and project cancellations across Latin America; the failure of the Iteris integration; and the fact that headcount had been declining for multiple quarters while management projected continued growth.
Act now to protect your rights or call Joseph E. Levi, Esq. at (212) 363-7500.
ABOUT THE FIRM — Levi & Korsinsky represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by June 23, 2026.
Frequently Asked Questions About the GLOB Lawsuit
Q: When did Globant allegedly mislead investors? A: The class period runs from February 15, 2024 to August 14, 2025. The alleged fraud was revealed through three corrective disclosures in February, May, and August 2025, each causing significant stock declines.
Q: What specific misstatements does the GLOB lawsuit allege? A: The complaint alleges Globant made materially false or misleading statements regarding the success of its Latin American expansion, the strength of regional demand, workforce stability, and the Iteris acquisition integration, while concealing wage freezes, client defections, and declining headcount.
Q: What do GLOB investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my GLOB shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171