PR Newswire
Important Notice Regarding Alleged Latin American Expansion Misrepresentations That Cost Globant Investors Over $143 Per Share
NEW YORK, May 21, 2026 /PRNewswire/ — SueWallSt notifies investors in Globant S.A. (NYSE: GLOB) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between February 15, 2024 and August 14, 2025. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
From $210.17 GLOB share price collapsed to $151.72 per share on February 21, 2025. The stock would fall an additional $31.37 per share to close at $101.47 on May 16, 2025, and a further $11.66 per share to close at $66.46 on August 15, 2025. The lead plaintiff deadline is June 23, 2026.
The Alleged $1 Billion Latin American Strategy Failure
The IT services outsourcing sector in Latin America was projected to grow 11% in 2024. Globant staked its future on that growth, announcing a $1 billion strategic pivot to increase Latin American business in mid-2023. The lawsuit contends that throughout 2024, Globant painted a picture of regional strength and expanding demand while the opposite was occurring behind the scenes.
According to the complaint, Globant faced declining client demand, project cancellations, and a troubled integration of its December 2023 Iteris acquisition in Brazil. Former Iteris clients allegedly left because of Globant’s higher hourly rates and poor integration practices.
How the Alleged Wage Freezes Undermined Regional Operations
The action claims Globant froze employee wages in Mexico and Argentina despite double-digit inflation in both countries. In practical terms, frozen wages amounted to pay cuts, triggering widespread employee unrest. The complaint alleges that degraded employee morale led to lower service quality, prompting further client defections and creating a downward spiral that management concealed from investors.
Key Latin American Expansion Allegations for Shareholders
- Globant allegedly concealed declining demand for its services across Latin America throughout 2024, even as management described the Company as “very strong in LatAm”
- The Iteris acquisition in Brazil allegedly failed to integrate properly, with legacy Iteris employees denied promised salary and benefit increases
- Wage freezes in Argentina and Mexico allegedly caused widespread employee turmoil that degraded client service delivery
- Latin American revenue declined 1.3% in Q4 2024 and 9% year-over-year in Q1 2025, contradicting repeated growth assurances
- Globant ultimately reduced headcount by approximately 1,000 employees and recorded a $47.6 million restructuring charge
- 38% of Globant’s regional revenue came from Mexico and Brazil, the two markets that allegedly suffered the worst deterioration
Submit your information to join this case or call Joseph E. Levi, Esq. at (888) SueWallSt.
“This case presents important questions about geographic expansion disclosure obligations in the IT services sector. When a company stakes a $1 billion strategic pivot on a specific region, investors are entitled to accurate information about whether that strategy is succeeding or failing.” — Joseph E. Levi, Esq.
ABOUT SUEWALLST — Over the past 20 years, SueWallSt has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, SueWallSt has ranked in ISS Securities Class Action Services’ Top 50 Report. Applications to serve as lead plaintiff must be filed by June 23, 2026.
Frequently Asked Questions About the GLOB Lawsuit
Q: What is the GLOB class action lawsuit about? A: A securities class action has been filed against Globant S.A. (NYSE: GLOB) alleging materially false and misleading statements between February 15, 2024 and August 14, 2025. Shares fell approximately 68% after the truth was revealed through a series of corrective disclosures, causing significant losses for shareholders.
Q: Who is eligible to join the GLOB investor lawsuit? A: Investors who purchased GLOB stock or securities between February 15, 2024 and August 14, 2025 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: How much did GLOB stock drop? A: Shares fell approximately 68%, a decline of $143.71 per share from the pre-class period share price, after the company disclosed declining Latin American revenue, massive headcount reductions, and a $47.6 million restructuring charge. Investors who purchased shares during the class period at artificially inflated prices may be entitled to compensation.
Q: What do GLOB investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my GLOB shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
View original content to download multimedia:https://www.prnewswire.com/news-releases/lost-money-on-globant-sa-glob-join-class-action-suit-seeking-recovery—contact-suewallst-302778436.html
SOURCE SueWallSt.com
