A class action lawsuit was filed against Monday.com (MNDY) on March 10, 2026.
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Plaintiffs-shareholders- in the federal securities class action allege that they acquired monday stock at artificially inflated prices between September 17, 2025 and February 6, 2026, known as the “Class Period.” They are now seeking compensation for financial losses incurred upon public revelation of the company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this securities lawsuit, click here.
What Does Monday.com Do?
Monday.com is a tech company engaged in software development in the United States and abroad. As detailed in the complaint, Monday offers a cloud-based Work Operating System (Work OS). This is a so-called “modular platform” that facilitates customized workflow and work management applications. It does so through the use of various products, namely: monday work management (team workflows and projects); monday CRM (sales tracking), monday dev (software development workflows), monday service (service desk management), WorkCanvas (digital whiteboard), and WorkForms (custom forms and surveys).
It has an estimated 250,000 customers around the world using its AI work platform. It also has over 3,100 employees.
Why are Shareholders Suing Monday.com?
The company and four of its senior officers (the “Individual Defendants”) are accused of deceiving investors by lying and withholding critical information about monday’s business and prospects during the Class Period.
Specifically, they are accused of omitting truthful information about the use of strategic AI investments to drive long-term growth from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused monday stock to trade at artificially inflated prices during the time in question. Following some partial revelations on November 10, 2025, the full truth came out on February 9, 2026. That’s when the company published its fourth quarter and full fiscal year results, and conducted a related earnings call. During the call, the Company’s CFO (an Individual Defendant) responded to an analyst’s question with the following: “But as we said at the last time we gave guidance, we felt and we believed based on the visibility that we had at the time that the 1.5 number is a number that we are going to achieve. It looks reasonable to us. Since then, there is a lot of noise in the market in terms of macro economy. As we said, our no-touch business continued to be choppy and volatile.”
The CFO added: “We didn’t see the improvement that we expected to see. And we see shift in the business and shifting the business takes time. So this is why we thought based on what we know today, that it would be prudent to reset the guidance that we are giving.”
Taking a Closer Look
As alleged, the company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.
During monday’s annual Analyst/Investor Day call held at the beginning of the Class Period, for instance, one of the company’s co-CEOs (an Individual Defendant) stated in relevant part: “… basically, we’re leveraging AI internally to make our sales team more efficient, to make our customer support more efficient and to make our R&D more efficient. And I think that going forward, ’27, ’28, we’ll be able to scale the company even more, while increasing their head count in even a less significant way in 2026.”
During the same call, the company’s CFO added in pertinent part: “And we believe, and we are confident that we are going to achieve $1.8 billion in fiscal year ’27. And why we are confident in that? Everything that you heard until now from the multiproduct that we have, the platform that we continue to invest with mondayDB, the fact that we are leveraging AI and capabilities into – layered into our platform, the fact that we are enhancing the enterprise customers’ capabilities, which means bigger and larger customers will continue to buy monday.”
Lastly, during the question-and-answer portion of the call, the company’s CFO responded to an analyst’s inquiry concerning monday’s $1.8 billion target for 2027 by stating in relevant part: “Yes. You should think about that as a base case. This is what we believe we can achieve. This is not taking into account the fact that AI is going to generate significant ARR in terms of the next few years because monetization will only start next year.”
Actions You May Take
If you have purchased the company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, click here.
The deadline to file for lead plaintiff in this class action is May 11, 2026.