IT and software services firm Globant S.A. (NYSE: GLOB) is now the subject of a class action lawsuit alleging securities fraud. The company had previously promoted a plan to transform its Latin American operations into a major growth driver, but in reality, it was grappling with a combination of declining demand, client attrition, and project cancellations. The deadline for investors to apply to serve as lead plaintiff is June 23, 2026.

The case has been filed in the U.S. District Court for the Southern District of New York. It seeks to represent investors who purchased Globant securities between February 15, 2024, and August 14, 2025. Named as defendants are the company itself, along with executives including CEO Martin Migoya, CFO Juan Ignacio Urthiague, and former Chief Operating Officer Patricia Pomies. They are accused of violating federal securities laws by making false and misleading statements regarding the state of the Latin American business.

The Allegations of Misrepresentation

According to the complaint, throughout the class period, Globant boasted to investors about the successful progress of its strategic transformation in Latin America. The reality, however, was starkly different. The company was facing persistent declines in demand across the region, had frozen employee salaries in Argentina and Mexico as early as late 2023, and was experiencing reductions and cancellations of projects from Latin American clients.

Revelations Through Corrective Disclosures

The truth emerged through a series of corrective disclosures. On February 20, 2025, the company released its fourth-quarter financial results, showing a 1.3% decline in Latin American revenue. Globant acknowledged that the region was experiencing some instability due to political turmoil. On that day, the stock price plummeted approximately 28%, falling from $210.17 to $151.72.

On May 15, 2025, with the release of first-quarter results, Latin American revenue was reported down 9% year-over-year, with notable contractions in Mexico and Brazil. The company attributed this to a challenging macroeconomic and geopolitical backdrop. The share price fell another 24%, closing at $101.47.

The full extent of the Latin American operation's struggles was laid bare on August 14, 2025, when the company disclosed plans to cut approximately 1,000 employees and recorded $47.6 million in restructuring charges. The stock price dropped about 15% further, closing at $66.46. At this point, Globant's share price had fallen approximately 68% from its starting level around $210.

Several law firms have announced their involvement in the litigation. The deadline for investors to apply to serve as lead plaintiff remains June 23, 2026.