Globant (GLOB) told investors that Latin America was a major growth story, citing a $1 billion strategic pivot, strong demand, and expansion in markets such as Brazil and Mexico. But according to the complaint, that strategy was already under strain behind the scenes.
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A securities lawsuit filed against Globant S.A. claims the company misled investors about the health of its Latin American business even as its strategy was allegedly deteriorating, and that shareholders suffered losses as the alleged truth emerged through a series of disclosures.
Globant S.A., a Luxembourg-incorporated technology services company founded in Argentina with a large Latin American workforce, is facing a federal securities lawsuit filed on April 24, 2026, in the United States District Court for the Southern District of New York. The plaintiff, Ohio Carpenters’ Pension Fund, alleges that Globant and three senior executives made materially false and misleading statements about the company’s Latin American operations. The class period runs from February 15, 2024, to August 14, 2025. The complaint alleges that as the alleged truth emerged across three corrective disclosures, the company’s stock fell from over $210 per share to approximately $66 per share.
Investors who purchased Globant common stock during the class period and suffered losses are encouraged to learn more about their potential legal rights.
Company and Its Latin American Pivot
Globant is an international technology services company providing digital consulting, software development, and IT outsourcing services to multinational corporations across multiple sectors. The company was founded in Argentina, maintains its principal offices in Luxembourg, and lists its shares on the New York Stock Exchange under the ticker symbol GLOB. The complaint states that before 2023, Globant derived most of its revenue from clients in the United States, leveraging its comparatively less expensive Latin American workforce as a competitive advantage. In mid-2023, the company announced a strategic pivot, committing to invest approximately $1 billion to expand its business within Latin America, including a December 2023 acquisition of Iteris, a Brazilian digital consulting company with more than 600 employees.
Core Allegations Against Globant and Its Officers
The lawsuit centers on what the plaintiff describes as a sustained campaign of positive statements about Globant’s Latin American operations made while the strategy was allegedly failing. The complaint alleges that Globant faced declining client demand, project cancellations, client defections, and widespread employee turmoil stemming from wage freezes in Argentina and Mexico, all of which were concealed from investors. According to the complaint, the Iteris acquisition in Brazil was troubled, with former clients departing over Globant’s elevated hourly rates and integration failures, while employee unrest spread as frozen wages eroded purchasing power amid high regional inflation.
Investors who acquired Globant securities during the class period can review eligibility, deadlines, and next steps on the Globant lawsuit page.
Management Statements Cited in the Complaint
The complaint quotes CEO Martin Migoya during the February 15, 2024 earnings call as touting Globant’s prominence in Latin America and describing the region as offering a “robust business pipeline” with Brazil nearly doubling its team over the prior year. During a May 2024 call, Migoya described Globant as “the only global tech player” from Latin America and characterized the company as the “employer of choice in the region.” CFO Juan Ignacio Urthiague stated during that same period that Latin America accounted for about 22% of revenues and that the company was “very confident about our ability to grow in Latin America,” citing the large markets in Mexico and Brazil as largely untapped opportunities.
COO Patricia Pomies separately stated during the August 2024 earnings call that demand was “very, very high,” that the company was “very strong in LatAm,” and that employees were “very happy” in internal surveys, citing the company’s culture as a key retention driver.
How the Alleged Truth Emerged
The complaint identifies three corrective disclosures through which the alleged truth came to light. On February 20, 2025, Globant reported a 1.3% decline in Latin American revenue and for the first time acknowledged weakness in the region during 2024, with executives citing “political turmoil” in Brazil and Colombia and “political noise” in the fourth quarter. Following that disclosure, the company’s stock fell approximately 28%, dropping from roughly $210 per share to approximately $151 per share.
On May 15, 2025, Globant reported first-quarter 2025 results showing a 9% year-over-year decline in Latin American revenue, with executives acknowledging “notable contractions in Mexico and Brazil” and stating directly that “Mexico is suffering. Brazil is suffering,” sending the stock down more than 23% to approximately $101 per share. The third and final disclosure came on August 14, 2025, when Globant reported a 2% reduction in headcount, or roughly 1,000 employees, and took a $47.6 million restructuring charge, while executives acknowledged for the first time that headcount in Latin America had been declining “for a number of quarters” and described “deterioration” in Brazil and Mexico throughout 2024 and into 2025, after which the stock fell nearly 15% to approximately $66 per share.
Why This Matters to Investors
The lawsuit alleges that investors paid artificially inflated prices for Globant shares throughout the class period because the company portrayed its Latin American expansion as growing and healthy while concealing significant operational failures. The complaint contends that wage freezes amounting to real pay cuts, client defections, a troubled acquisition, and regional headcount declines were all known internally but withheld from the investing public. Shareholders who purchased Globant stock between February 15, 2024, and August 14, 2025, and held through or sold during the alleged corrective disclosures, may have incurred losses tied to the gap between the stated and the alleged true condition of the company’s Latin American business.
Legal Claims and Investor Rights
The lawsuit asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 against all defendants, alleging that they knowingly or recklessly made false and misleading statements and omitted material facts about Globant’s business operations and prospects. A separate claim under Section 20(a) of the Exchange Act is asserted against the three individual defendants, CEO Martin Migoya, CFO Juan Ignacio Urthiague, and COO Patricia Pomies, on the basis that they exercised control over the company and are therefore liable for the primary violations alleged.
Investors who purchased Globant securities during the class period can check their eligibility and learn more about their legal rights.
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