Monday.com Faces Securities Fraud Lawsuit, Lead Plaintiff Deadline Set for May

A securities class action filed against monday.com and certain of its executive officers in federal court in New York alleges the company misled investors about its growth trajectory during a five-month window when its stock was trading on optimistic guidance that plaintiffs say was detached from reality.

The lawsuit, captioned Potter v. monday.com Ltd., No. 26-cv-01956, was filed in the U.S. District Court for the Southern District of New York. It covers purchasers or acquirers of monday.com common stock (NASDAQ: MNDY) between September 17, 2025 and February 6, 2026. Law firm Robbins Geller Rudman & Dowd LLP filed a notice seeking lead plaintiff status in the case, with a court deadline of May 11, 2026 for lead plaintiff motions.

The complaint centers on three core allegations. First, that defendants created a false impression of having reliable insight into monday.com's projected revenue outlook and anticipated growth, citing the company's expansion of its core platform, AI-driven investments, increasing enterprise adoption, and multi-product integration. Second, that monday.com was simultaneously experiencing decelerating new customer growth, weaker expansion within existing accounts, and longer enterprise sales cycles, making its $1.8 billion 2027 revenue target increasingly unlikely to be met. Third, that defendants misled investors through materially flawed statements of confidence, though the available court filings do not yet include the complete text of that third allegation.

The class period's end date of February 6, 2026 is notable. That date aligns with a period when companies in the software sector were reporting fourth-quarter earnings and issuing forward guidance. monday.com has not issued a public response to the allegations in available materials.

Under the Private Securities Litigation Reform Act of 1995, any investor who purchased monday.com common stock during the class period can seek appointment as lead plaintiff. The lead plaintiff is generally the movant with the greatest financial interest in the relief sought who is also typical and adequate of the putative class. Critically, an investor's ability to share in any potential recovery does not depend on serving as lead plaintiff.

Robbins Geller attorney J.C. Sanchez is listed as the contact for prospective lead plaintiffs, reachable at 800-449-4900 or info@rgrdlaw.com. The firm, which has 200 lawyers across 10 offices and is headquartered at 655 W. Broadway, Suite 1900 in San Diego, claims it recovered more than $916 million for investors in 2025 and ranks first on the ISS Securities Class Action Services Top 50 Report for the fourth time in five years.

The full complaint, including the names of the individual executive officer defendants, has not been made available in materials released by the firm. Confirmation of the complete allegation text and the specific executives named as defendants would require review of the operative complaint on the court docket.