Monday.com Faces Class Action Lawsuit
Analysis based on 10 articles · First reported Mar 12, 2026 · Last updated Mar 25, 2026
The market has reacted negatively to Monday.com's revised financial outlook and the subsequent class action lawsuit, leading to significant drops in its stock price. This event highlights the importance of transparent financial reporting for publicly traded companies.
Monday.com is facing a class action lawsuit filed by Glancy Prongay & Wolke on behalf of investors. The lawsuit alleges that Monday.com made materially false and/or misleading statements regarding its business operations and prospects, specifically concerning its revenue growth targets. The company initially reported third-quarter 2025 revenue of $316.9 million and maintained a $1.8 billion revenue target for fiscal year 2027. However, it later rescinded this target and guided for a significant deceleration of top-line growth in 2026. These announcements led to substantial declines in Monday.com's stock price, injuring investors. The lawsuit claims that Monday.com failed to disclose decelerating new customer growth, weaker expansion within existing accounts, and longer enterprise sales cycles.
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