Investigators launched a probe into Monday.com Ltd. regarding potential breaches of fiduciary duties by directors and officers. This action follows a securities law violation lawsuit alleging false statements about revenue outlook and growth.
The company allegedly failed to disclose decelerating new customer growth and weaker expansion in existing accounts. These undisclosed issues made the company’s 2027 financial targets increasingly unattainable.
Monday.com withdrew its 2027 targets on February 9, 2026. The stock price declined significantly following the withdrawal of these targets. The current investigation aims to determine if specific directors are liable for the allegations in the initial lawsuit.