monday.com (MNDY) told investors AI innovation, enterprise expansion, and multi-product growth supported a path to $1.8 billion in 2027. But the lawsuit alleges growth was slowing, expansion within existing accounts was weakening, and sales cycles were getting longer.
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Investors who purchased monday.com stock during a roughly five-month window are now plaintiffs in a federal securities lawsuit filed in New York, alleging that company executives repeatedly overstated confidence in a $1.8 billion revenue target that was later withdrawn when the company issued weaker 2026 guidance. If you purchased monday.com stock between September 17, 2025 and February 6, 2026 and suffered losses, you may wish to review your legal options.
What Investors Are Alleging Against Monday.com
A proposed class action filed on March 10, 2026 in the United States District Court for the Southern District of New York alleges that monday.com Ltd. and four of its top executives made materially false and misleading statements to investors between September 17, 2025 and February 6, 2026, a period the complaint refers to as the Class Period.
According to the complaint, the alleged fraud played out in two stages. The first came on November 10, 2025, when monday.com issued third quarter 2025 results that beat revenue estimates but accompanied those results with softer-than-expected fourth quarter guidance. The complaint alleges the stock fell from $189.59 per share to $166.21 per share that day. The more significant drop occurred on February 9, 2026, following fourth quarter earnings, when the company withdrew its $1.8 billion fiscal year 2027 revenue target entirely. According to the complaint, the stock fell from a closing price of $98.00 on February 6, 2026 to $77.63 on February 9, 2026, a decline of approximately 21%.
Monday.com’s Business and the Growth Story at the Center of the Dispute
Monday.com is an international software company headquartered in Tel Aviv-Yafo, Israel, whose shares traded on the NASDAQ under the symbol MNDY during the period in question. The company develops and sells a cloud-based Work Operating System, a modular platform that allows organizations to build customized workflow and work management applications. Its product suite includes monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, serving customers across a wide range of industries and geographies.
Central to the lawsuit is how management described the company’s growth trajectory at its September 2025 Analyst and Investor Day, where executives publicly committed to $1.8 billion in fiscal year 2027 revenue backed by investments in artificial intelligence, enterprise expansion, and multi-product adoption. The complaint alleges that this growth narrative was presented with a level of confidence that did not accurately reflect the actual conditions facing the business at the time.
The Allegations: A Rosy Outlook That Allegedly Concealed Real Deterioration
The complaint alleges that throughout the Class Period, monday.com executives made repeated public statements portraying the company as firmly on track toward its $1.8 billion 2027 revenue target, while concealing material adverse information about decelerating customer growth, weakening expansion within existing accounts, and lengthening enterprise sales cycles. The overarching theme of the lawsuit is that investors were given a picture of durable, AI-fueled momentum that did not account for conditions the defendants allegedly knew about or should have known about at the time.
The complaint further alleges that when softer Q4 2025 guidance was issued in November 2025, management attributed the miss to a timing-related shift in performance marketing rather than disclosing the more fundamental headwinds that were allegedly building. Executives continued to publicly reaffirm the $1.8 billion target on the November earnings call, according to the complaint, even as those underlying challenges were allegedly worsening.
Follow this case for ongoing updates on how the allegations develop and what they may mean for investors who held monday.com shares during this period.
What Management Said: Key Statements Cited in the Complaint
The complaint quotes extensively from monday.com’s September 17, 2025 Investor Day. Co-CEO Eran Zinman is quoted describing what the complaint characterizes as exceptional AI product traction, citing over 67 million AI actions on the platform, 45,000 actions in the company’s monday Sidekick product, and 7,000 apps built through the monday Vibe platform in two months.
CFO Eliran Glazer is quoted at the same event saying the company was confident it would achieve $1.8 billion in fiscal year 2027, describing the target as a base case supported by multi-product expansion, enterprise growth, platform investment, and AI monetization. When an analyst asked at Investor Day whether the $1.8 billion target represented a midpoint, floor, or high end, Glazer is quoted responding that it should be thought of as a base case.
On the November 10, 2025 earnings call, Co-CEO Roy Mann is quoted saying the strong Q3 results put the company firmly on track toward the $1.8 billion target, citing record profitability and what he described as surging AI engagement. Glazer is quoted on the same call saying the company felt very confident with the $1.8 billion number based on everything we see today, and that it was achievable given expected enterprise expansion, multiproduct adoption, and AI monetization. These and related statements are identified in the complaint as materially false and misleading when made.
The Disclosures: How the Alleged Truth Came Out
The complaint identifies two dates on which it alleges corrective information reached the market. On November 10, 2025, monday.com reported Q3 revenue of $316.9 million, up 26% year over year, but issued Q4 guidance below Wall Street expectations. The complaint alleges this was attributed publicly to a performance marketing strategy shift while the more serious underlying issues were not disclosed. The stock declined approximately 12% that day, per the complaint.
The more complete alleged corrective disclosure came on February 9, 2026, when the company reported Q4 and full year 2025 results and simultaneously withdrew its $1.8 billion fiscal year 2027 target. CFO Glazer stated in the earnings call, according to the complaint, that given the evolving nature of the AI landscape and the choppiness in the no-touch demand environment, the company would no longer discuss the previously provided 2027 targets. When asked directly whether the $1.8 billion number was off the table, Glazer confirmed it was, according to the complaint. The stock fell approximately 21% the following trading day.
Why This Case May Matter to Shareholders
The complaint alleges that investors who purchased monday.com shares during the Class Period did so at prices artificially inflated by management’s repeated and public expressions of confidence in the $1.8 billion 2027 revenue target. According to the complaint, defendants knew or recklessly disregarded that new customer growth was decelerating, expansion within existing accounts was weakening, and enterprise sales cycles were lengthening, all of which made the stated target increasingly unlikely to be achieved.
The complaint argues that the market reacted sharply on both disclosure dates precisely because those disclosures contradicted what had previously been communicated, suggesting investors had been relying on the earlier statements in making their investment decisions. Analysts cited in the complaint reduced their price targets significantly in response, with one firm described as lowering its price target by 47% and another publishing a report noting that the $1.8 billion FY27 guidance was now off the table.
The Legal Claims Filed Against Monday.com and Its Executives
The complaint asserts two counts under the federal Exchange Act. The first count alleges violations of Section 10(b) of the Exchange Act and Rule 10b-5, which prohibit material misstatements and omissions in connection with the purchase or sale of securities. The complaint alleges that defendants knowingly or recklessly made false and misleading statements about monday.com’s revenue growth outlook and artificially inflated the company’s stock price as a result.
The second count alleges violations of Section 20(a) of the Exchange Act against the individual defendants, including Co-CEOs Roy Mann and Eran Zinman, CFO Eliran Glazer, and Chief Revenue Officer Casey George, on the theory that as senior officers they were controlling persons of the company and are therefore liable for the company’s alleged primary violations. The complaint seeks damages, interest, and attorneys fees on behalf of all investors who purchased monday.com shares during the Class Period.
If you purchased monday.com shares during the Class Period and have questions about your rights, you may wish to consult with a securities attorney to understand your options.
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