Globant ($GLOB) Latin America Expansion Problems Case

Investors can submit applications for the lead plaintiff role.

S.D. New York

Court

1:26-cv-03405

Case number

02/15/2024

Class period Start

08/14/2025

Class period End

06/23/2026

Lead Plaintiff motion deadline

$GLOB investors filed a claim against Globant for allegedly overstating the success of its Latin America strategy while demand, client projects, and employee conditions in the region were worsening.
After Globant disclosed headcount reductions, a restructuring charge, and deterioration in Brazil and Mexico, $GLOB fell 14.9% on August 15, 2025, closing at $66.46 per share.
$GLOB investors can join this case to be notified about potential recovery.
Case Details:

Between February 15, 2024 and August 14, 2025, Globant told investors its Latin America expansion was a major growth opportunity. Executives emphasized the company’s prominence in the region, strong demand, hiring plans, employee retention, and opportunities in Brazil, Mexico, and Argentina.

However, during this period, investors allege Globant’s Latin America strategy was struggling. Globant allegedly failed to disclose the demand in Latin America was declining and clients were leaving or canceling projects, the Iteris acquisition in Brazil was troubled by high rates, integration issues, and client-service problems, and wage freezes in Mexico and Argentina were creating employee unrest and weakening service quality.

Then, on February 20, 2025, the company reported a 1.3% decline in Latin America revenue and acknowledged the region had been rocky in 2024. $GLOB fell $58.45, closing at $151.72. 

Additional revelations followed on May 15, 2025, including a 9% year-over-year decline in Latin America revenue and weakness in Mexico and Brazil. 

By August 15, 2025, shares had dropped to $66.46 after Globant disclosed a 2% headcount reduction, a $47.6 million restructuring charge, and deterioration in Brazil and Mexico, representing a total decline of 68.4% over the correction period.

Based on these events, $GLOB investors filed a claim against Globant, alleging the company:
It overstated the strength of its Latin America expansion.
It hid declining demand, client losses, project cancellations, wage freezes, and integration problems in the region.
It caused investors to reassess the company when the weakness in Latin America was revealed.
Investors argue Globant misled the market about the health and growth of its Latin America business, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Omissions

Suspected Party

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/21/2025

Filing date

04/24/2026

Lead Plaintiff Deadline

06/23/2026

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