Globant S.A. Class Action Lawsuit – GLOB

Introduction

A securities class action lawsuit has been filed against Globant S.A. (NYSE: GLOB), its CEO Martin Migoya, CFO Juan Ignacio Urthiague, and former COO Patricia Pomies. The lawsuit covers investors who purchased or acquired Globant common stock between February 15, 2024 and August 14, 2025, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that defendants made materially false and misleading statements about the success of Globant's $1 billion strategic pivot to Latin America, concealing declining demand, client defections, project cancellations, and employee wage freezes that were undermining the Company's operations in the region. As the truth about these failures emerged over three corrective disclosures in 2025, Globant's stock price collapsed from over $210 per share to $66.46 per share, causing significant losses for investors.

Company Profile

Globant S.A. is a Luxembourg-incorporated international technology services company that provides digital consulting, software development, and IT outsourcing services to multinational corporations across a variety of sectors. The Company was founded in Argentina, maintains a workforce largely based in Latin America, and traditionally derived most of its revenue from U.S. clients before announcing a $1 billion strategic pivot to expand its Latin American business in mid-2023.

Class Period

February 15, 2024 – August 14, 2025, inclusive.

Investors who purchased or acquired Globant S.A. (GLOB) securities during the Class Period may be entitled to seek recovery under the federal securities laws.

Allegations

The complaint alleges that throughout the Class Period, Globant and its senior executives painted a consistently optimistic picture of the Company's Latin American expansion to investors. Beginning with the Q4 2023 earnings call on February 15, 2024, CEO Martin Migoya described Globant's "prominence" in Latin America as "particularly beneficial" and highlighted "significant investments in Mexico and Brazil," which together accounted for 38% of the Company's regional revenue. CFO Juan Ignacio Urthiague told investors the Company was "very confident about our ability to grow in Latin America" and emphasized that Brazil and Mexico represented opportunities to "significantly expand" Globant's presence. In the Company's Annual Report filed February 29, 2024, Globant described employee retention as "one of our main priorities and a key driver of operational efficiency and productivity" and emphasized its strategy of expanding its global delivery footprint to "gain access to additional pools of talent."

According to the complaint, these statements were materially false and misleading. In reality, as alleged in the complaint, Globant's Latin American strategy was failing. The Company was facing declining demand for its services, client defections, and project cancellations across the region. Globant's high-profile December 2023 acquisition of Iteris, a Brazilian digital consulting firm, was troubled, as former Iteris clients allegedly left because of Globant's high hourly rates, and the Company allegedly failed to properly integrate Iteris employees, who never received promised salary and benefit increases. Meanwhile, Globant had frozen wages for employees in Mexico and Argentina beginning in late 2023. Given the high inflation rates in those countries, particularly Argentina, which experienced double-digit inflation, these wage freezes effectively amounted to wage cuts, triggering widespread employee unrest that further degraded the Company’s ability to deliver quality services to clients.

The complaint alleges that defendants continued to conceal these problems through successive quarterly earnings calls. On the Q1 2024 call, Migoya described Globant as the "employer of choice" in Latin America and claimed the Company was in a "forefront position, outpacing other players in the industry." Urthiague told investors that Argentine salaries had experienced "a very good impact" and that the Company was "not expecting big changes," while Argentine employees' purchasing power was being eroded by frozen wages and persistent inflation. On the Q2 2024 call, COO Patricia Pomies stated that demand was "very, very high" and that the Company was "continu[ing] hiring in many of the countries," while Urthiague described Latin America as "a great place to be." By the Q3 2024 call in November, Pomies claimed the Company was "slightly growing year-over-year" in Latin America and would "start growing faster," while in reality the Computer Trade Association had formally petitioned Globant's CEO for urgent salary increases and workers alleged the Company was blocking unionization efforts. According to the complaint, defendants knew or recklessly disregarded that these positive representations were materially misleading because they had access to internal information about the deteriorating conditions in Latin America, including declining client demand, the wage freezes, employee unrest, and the failure of the Iteris acquisition.

The Truth Emerges

The truth about Globant's Latin American operations emerged through a series of disclosures in 2025. On February 20, 2025, the Company reported Q4 2024 results that missed guidance, revealing a 1.3% decrease in Latin American revenue and offering more muted Q1 2025 guidance. On the earnings call, Migoya acknowledged for the first time that the situation in Latin America during 2024 had been "a little bit rocky" due to "political turmoil and different things" in Brazil and Colombia, while Urthiague pointed to "a lot of political noise in Q4." This was the first time Globant gave investors any indication that its Latin American expansion had encountered significant problems during 2024.

On May 15, 2025, the Company reported disappointing Q1 2025 results that disclosed further deterioration. Globant acknowledged "a challenging macroeconomic and geopolitical context" affecting spending patterns among its largest Latin American customers and revealed that Latin American revenue had declined 9% year-over-year, "with notable contractions in Mexico and Brazil." Migoya conceded that "growth in some countries in Latin America [was] lower than expected," while the Company stated bluntly that "Mexico [is] suffering. Brazil is suffering." The full extent of the failures was revealed on August 14, 2025, when Globant reported Q2 2025 results disclosing that it had reduced headcount by approximately 1,000 employees and taken a $47.6 million restructuring charge. On the earnings call, defendants admitted that headcount in Latin America had been declining "for a number of quarters" and discussed the "deterioration" in Brazil and Mexico throughout 2024 and into 2025, a stark contradiction of the Company's prior statements about growth and expansion in those markets.

Market Reaction

Globant's stock price suffered three sharp declines as the truth about its Latin American operations reached the market. Following the February 20, 2025 disclosures, GLOB fell $58.45 per share, a decline of nearly 28%, from a closing price of $210.17 on February 20 to $151.72 on February 21, 2025. The May 15, 2025 disclosures triggered a further decline of $31.37 per share, more than 23%, with the stock falling from $132.84 to $101.47 on May 16, 2025. The August 14, 2025 revelations drove the stock down an additional $11.66 per share, a decline of nearly 15%, from $78.12 to $66.46 on August 15, 2025. In total, GLOB's stock price declined from $210.17 per share before the first corrective disclosure to $66.46 per share after the final disclosure, a cumulative loss of approximately 68% across the three corrective events.

Next Steps

●       Lead Plaintiff Deadline: June 23, 2026

●       The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

●       The Court will then consider motion for class certification.

●       The Court will later consider a motion to dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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