Investors who purchased monday.com common stock (NASDAQ: MNDY) between September 17, 2025, and February 6, 2026, have until May 11, 2026, to become lead plaintiff in a securities fraud class action lawsuit. This deadline is critical—it’s your window to take a formal role in the case by demonstrating that you suffered significant losses and are prepared to represent the broader class of affected shareholders. The lawsuit, Potter v. monday.com Ltd. (Case No. 26-cv-01956 in the U.S.
District Court for the Southern District of New York), claims that company executives misrepresented monday.com’s business prospects, growth trajectory, and investment in artificial intelligence, leading to a devastating 20.8% stock price drop on February 9, 2026, when the company rescinded its $1.8 billion 2027 revenue target. This article explains what the case is about, why the deadline matters, and what steps investors should take if they were affected by the stock decline. The lawsuit stems from a pattern of alleged misstatements about customer growth and company momentum. On February 9, 2026, when monday.com released its Q4 and full-year 2025 financial results, the market learned that new customer growth had been decelerating, existing customers were not expanding their accounts at expected levels, and the company’s AI investments were inadequate to drive future growth. These revelations contradicted prior statements to investors, triggering an immediate market correction that wiped billions in shareholder value. Understanding your rights and obligations as a potential class member—particularly the lead plaintiff deadline—is essential to any recovery strategy.
Table of Contents
- What Is the Monday.com Securities Fraud Lawsuit About?
- The February 2026 Catalyst and Stock Collapse
- Who Is Included in the Class Period and Class Definition?
- What Does It Mean to Become Lead Plaintiff by the May 11, 2026 Deadline?
- Key Misconceptions and Investor Concerns About Securities Class Actions
- The Role of Multiple Law Firms and Competition for Lead Plaintiff
- Timeline and What Happens After May 11, 2026
What Is the Monday.com Securities Fraud Lawsuit About?
The Potter v. monday.com Ltd. lawsuit alleges that the company and its executives made material misstatements and omissions about the trajectory of the business during the class period (September 17, 2025, through February 6, 2026). Specifically, plaintiffs claim that defendants misrepresented the strength of new customer acquisition, the expansion rates within existing customer accounts, and the adequacy of AI as a driver of long-term revenue growth. These statements were reportedly made in earnings calls, regulatory filings, guidance, and investor communications.
When the truth emerged on February 9, 2026—that growth was actually slowing and the $1.8 billion 2027 revenue target was no longer achievable—the stock price fell from $98.00 to $77.63, a loss of $20.37 per share or roughly 20.8%. This type of claim is familiar in securities litigation: a company makes forward-looking statements that investors rely on to make buy-and-hold decisions, but those statements later prove to be materially false or misleading. The lawsuit seeks to recover damages for shareholders who bought or held the stock during the class period and lost money when the truth was disclosed. Unlike a direct lawsuit against a company, a class action allows individual investors with smaller holdings to pool their claims and share the costs and risks of litigation. For example, a retail investor who held 500 shares might have lost $10,185 at the $20.37 decline per share—a real loss, but one that would be prohibitively expensive to pursue alone through individual arbitration or litigation.
The February 2026 Catalyst and Stock Collapse
On February 9, 2026, monday.com disclosed its Q4 and full-year 2025 financial results and simultaneously announced that it was withdrawing (rescinding) its previously issued guidance of $1.8 billion in revenue for 2027. This was a bombshell. Guidance is one of the most watched metrics by investors and analysts; when a company that is still in growth mode pulls its own forward-looking target, it signals serious underlying problems. In monday.com’s case, the company acknowledged that customer growth was not meeting expectations, that expansion within existing customer accounts was weaker than anticipated, and that the company’s AI strategy was not positioned to drive the growth rates investors had been anticipating.
The stock market responded swiftly and harshly. On the day of the announcement, monday.com shares fell 20.8%, closing at $77.63 after trading at $98.00 at the previous close. For a software company with a significant institutional investor base, a single-day decline of that magnitude is severe and often signals a loss of investor confidence in both near-term performance and long-term strategy. However, a one-day decline does not, by itself, create liability; the lawsuit’s core claim is that the company made affirmative false statements or omitted material facts that would have prompted a different stock valuation had investors known the truth. The timing of when statements were made and what was known at the time is critical to the case’s merit.
Who Is Included in the Class Period and Class Definition?
The class period for this lawsuit runs from September 17, 2025, through February 6, 2026—approximately five months. Class members are defined as persons or entities who purchased or otherwise acquired monday.com common stock during this period and were damaged by the alleged misstatements. If you bought shares of MNDY at any time from September 17, 2025, through the close of the market on February 6, 2026, you are likely a member of the class, even if you still hold those shares today or sold them after February 6, 2026. The key is when you purchased (or acquired through other means, such as through a company 401(k) plan or stock incentive plan), not when you sold.
Determining your class membership is straightforward: check your brokerage statements or 401(k) plan documents for any purchases of monday.com common stock with a trade date between September 17, 2025, and February 6, 2026. However, there are some exclusions that apply in most securities class actions. Typically excluded are the company’s officers, directors, and controlling shareholders, as well as any defendants in the case. If you fall into one of those categories, you would not be entitled to participate in any eventual settlement or recovery, though you could potentially pursue your own separate claim. For most retail investors and institutional shareholders, however, the class definition is broad and inclusive.
What Does It Mean to Become Lead Plaintiff by the May 11, 2026 Deadline?
Becoming lead plaintiff in a securities class action is a formal legal role with both benefits and responsibilities. As lead plaintiff, you would work with the plaintiff’s law firm to oversee the litigation, review key filings and motions, and make major strategic decisions about whether to settle or go to trial. You must also certify that you have suffered losses from the alleged misstatements and that you are willing to serve as a representative of all class members. The court uses a “most adequate plaintiff” standard, meaning that the lead plaintiff should have suffered significant damages, be committed to the case, and have competent legal representation. The May 11, 2026, deadline is the cutoff date for investors to file declarations of interest with the court and competing law firms to propose themselves as lead plaintiff counsel.
The advantage of being lead plaintiff is that you have a voice in the case and can ensure that class interests are protected; some settlements also include modest compensation for the lead plaintiff’s time and involvement. The disadvantage is that it requires some active participation and scrutiny from the plaintiff’s legal team (discovery, depositions, etc.). For most investors, simply being a class member is sufficient—you will participate in any settlement or judgment without having to take on the lead plaintiff role. If you are interested in becoming lead plaintiff, you should contact one of the law firms actively soliciting lead plaintiffs, such as Kessler Topaz Meltzer & Check, Robbins Geller Rudman & Dowd, or Faruqi & Faruqi, all of which have issued calls for lead plaintiffs as of March 2026. Make sure the firm has a track record of successful securities recoveries; some firms specialize in this area and have relationships with the plaintiffs’ bar.
Key Misconceptions and Investor Concerns About Securities Class Actions
One common misconception is that you must have sold your stock at a loss to be eligible for a recovery. This is not true. Class membership is based on when you purchased, not when you sold. If you bought 100 shares at $95 in November 2025 and sold them at $82 in March 2026, you are a class member with a loss of $1,300. But if you bought 100 shares at $95 and still hold them today at $75, you also are a class member (though your recoverable loss is not yet fully realized).
Conversely, if you bought shares on February 8, 2026, at $77 and the stock subsequently recovered to $90, you still have a recoverable claim because you purchased during the class period at an inflated price based on the alleged misstatements. Another concern investors often raise is whether their shares held in a 401(k) or IRA plan make them ineligible. The answer is no—shares acquired through retirement plans are treated the same as shares purchased directly through a brokerage account, and you should report them in your claim. A third misconception is that you need to hire your own lawyer or take individual legal action. A class action exists precisely to avoid that burden; once you are identified as a class member (usually through your brokerage records or plan documents), you will automatically be entitled to participate in any settlement distribution without having to file a separate claim or hire counsel. However, it’s wise to document your trades carefully and keep your brokerage statements, as you may need to provide proof of purchase and loss calculations to support your claim.
The Role of Multiple Law Firms and Competition for Lead Plaintiff
As of late March 2026, multiple law firms are actively competing to serve as lead counsel in the monday.com case. Kessler Topaz Meltzer & Check, Robbins Geller Rudman & Dowd, and Faruqi & Faruqi have all issued public notices inviting investors to consider them as lead plaintiff counsel. This competition is normal and, from a class member perspective, generally a positive development—it ensures that firms with significant resources and experience are vying for the lead plaintiff role, which tends to improve the quality of representation. When evaluating which firm to work with, consider their track record in similar securities fraud cases, the size of recoveries they have obtained, how long cases typically take, and whether they have a reputation for aggressively pursuing claims or favoring quick settlements.
It’s also important to understand that the lead plaintiff’s law firm will typically take a contingency fee (usually 25-30% of any recovery, subject to court approval) and will advance costs of litigation. This means class members do not pay attorneys’ fees out of pocket; fees are deducted from any settlement or judgment recovery. Be wary of any person or firm that asks you for upfront fees to represent you in a class action, as that is not how securities litigation works. The law firms handling the monday.com case are established firms with the resources to finance multi-year litigation without demanding payment from class members.
Timeline and What Happens After May 11, 2026
The May 11, 2026, lead plaintiff deadline is a crucial marker, but it is just one of many dates that will define the litigation. After the deadline passes, the court will review competing applications for lead plaintiff status and appoint the most adequate plaintiff (or co-plaintiffs). The lead plaintiff and counsel will then file an amended complaint with detailed allegations and legal theories. The defendants will move to dismiss, and if that motion is denied, the case will move into discovery—the phase where both sides exchange documents, take depositions, and build their respective cases. Securities litigation typically takes 2-4 years from the filing of the initial complaint to a settlement or judgment, though some cases resolve faster if the parties find common ground early.
During this period, no class member will be required to do anything. You do not need to hire an attorney, post a bond, or attend court hearings. Your only obligation is to keep your brokerage firm or plan administrator informed of any address changes so that you receive notice of major case developments and, eventually, settlement details. If the case settles (which is the outcome in the vast majority of securities class actions), you will receive notice of the settlement, a summary of how the recovery will be distributed, and instructions on how to submit a claim if you wish to participate. Once again, this process is entirely free to class members; any recovery you receive will be after attorneys’ fees and costs are deducted by the court-approved claims administrator.