Globant [GLOB] Securities Class Action Lawsuit Update

• Case Name Ohio Carpenters’ Pension Fund v. Globant S.A., et al.
• Case No.: 1:26-cv-03405
• Jurisdiction: United States District Court, Southern District of New York
• Filed on: April 24, 2026
• Class Period: February 15, 2024 – August 14, 2025, inclusive

Introduction

Globant S.A. (NYSE: GLOB) sold investors a story about Latin American expansion: growth, demand, resilience, and a regional advantage that would define its next chapter. Investors now allege that story was incomplete.

A securities class action filed by Ohio Carpenters’ Pension Fund claims Globant and senior executives misled shareholders about the health of the company’s Latin American operations while internally facing declining demand, client defections, project cancellations, wage freezes, employee unrest, and deteriorating service quality. According to the complaint, the company repeatedly described Latin America as a strategic engine for growth even as conditions in Brazil, Mexico, and Argentina were worsening.

The lawsuit alleges that when the truth emerged through a series of disclosures in 2025, Globant’s stock price collapsed across multiple earnings events, wiping out substantial shareholder value. The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

“Most GLOB shareholders never file or join the class action, which means they miss out on potential recovery funds,” said Attorney Joseph Levi.

Backdrop and Business Context

Globant S.A. is a Luxembourg-incorporated technology services company providing digital consulting, software development, and IT outsourcing services to multinational corporations. Founded in Argentina, the company built much of its workforce across Latin America while historically deriving most of its revenue from U.S.-based clients. That structure gave Globant a competitive edge: lower labor costs paired with premium enterprise consulting relationships.

In mid-2023, Globant announced what the complaint describes as a $1 billion strategic pivot toward expanding its Latin American business. A major part of that strategy was the December 2023 acquisition of Iteris, a Brazilian digital consulting company with more than 600 employees. Management framed the move as both a delivery expansion and a regional growth opportunity.

Executives repeatedly emphasized Mexico and Brazil as priority markets, noting they were responsible for 38% of Globant’s regional revenue. The company described Latin America not merely as a delivery center, but as a future revenue engine. CEO Martin Migoya told investors the company had “made significant investments in Mexico and Brazil” and was “optimistic about our future expansion this year.”

That was the public thesis. The complaint says the operational reality was very different.

Promises Made vs. Reality

During the class period, Globant allegedly positioned Latin America as both stable and expanding.

Migoya told investors: “Our prominence in Latin America, our home region, is particularly beneficial right now…” and described “a robust business pipeline” alongside “future expansion.”

CFO Juan Ignacio Urthiague reinforced that message: “We are very confident about our ability to grow in Latin America.” COO Patricia Pomies added that the company was “very strong in LatAm,” demand was “very, very high,” and Globant continued hiring while employees were “very happy.”

The company also described itself in SEC filings as focused on employee retention, calling people “one of our most valuable assets” and stating that retaining talent was “a key driver of operational efficiency and productivity.”

Investors allege those statements concealed a different picture.

According to the complaint, Latin American demand was declining, clients were reducing or canceling projects, and the Iteris acquisition in Brazil was struggling because Globant’s billing rates were too high for the local market and integration efforts were failing. Former clients reportedly left, and former employees allegedly described degraded client service and poor execution.

At the same time, Globant allegedly froze wages for employees in Argentina and Mexico despite high inflation. The complaint argues that these freezes amounted to effective pay cuts, fueling employee unrest, harming retention, and weakening service delivery. In Argentina, workers allegedly pushed for urgent salary increases, and complaints emerged regarding blocked unionization efforts.

The gap between message and reality sits at the center of the case.

Timeline of Alleged Misconduct and Disclosures

The alleged misconduct began with optimistic messaging in early 2024.

February 15, 2024: On the Q4 2023 earnings call, executives described Latin America as strategically central, with strong demand and meaningful expansion potential. Management highlighted investments in Brazil and Mexico and framed the region as a growth driver.

February 29, 2024: The company’s Form 20-F emphasized talent retention and expansion of its global delivery footprint, describing employee retention as a top priority.

Throughout May, August, and November 2024 earnings calls, management continued describing Latin America as strong, stable, and growing. Investors were told the company was hiring, demand remained high, attrition was low, and the company remained the “employer of choice” in the region.

Then came the disclosures.

February 20, 2025: Globant missed Q4 2024 guidance and disclosed a 1.3% decrease in Latin American revenue. Management acknowledged the region had been “a little bit rocky” and referenced political turmoil and “a lot of political noise.” The stock fell nearly 28%, dropping $58.45 per share from $210.17 to $151.72.

May 15, 2025: Globant reported disappointing Q1 2025 results and disclosed Latin American revenue had declined 9% year over year, with “notable contractions in Mexico and Brazil.” Management admitted that “Mexico is suffering. Brazil is suffering.” The stock fell another 23%, dropping $31.37 per share from $132.84 to $101.47.

August 14, 2025: The company disclosed it had reduced headcount by 2%, roughly 1,000 employees, and taken a $47.6 million restructuring charge. Executives acknowledged deterioration in Brazil and Mexico and said headcount had been declining “for a number of quarters.” The stock fell nearly 15%, dropping $11.66 per share from $78.12 to $66.46.

That sequence forms the complaint’s theory of loss causation.

Investor Harm and Market Reaction

By the time the alleged truth was fully revealed, GLOB had fallen from above $210 per share in February 2025 to $66.46 by August 15, 2025. The complaint alleges that investors purchased shares at artificially inflated prices because the market relied on management’s repeated assurances about operational strength and regional growth.

According to the complaint, the nearly 28% single-day decline followed investors’ first insight into problems in Latin America. The May 2025 disclosure deepened that concern. A 9% year-over-year revenue decline in Latin America, especially in Mexico and Brazil, suggested not a temporary headwind, but structural weakness.

The August 2025 restructuring disclosure made the problem harder to dismiss. A 1,000-person headcount reduction and a $47.6 million restructuring charge turned the narrative from slowdown to retrenchment.

The market reaction was sequential, not sudden. That matters in securities litigation. Plaintiffs often must show not just that bad news happened, but that each disclosure corrected prior misstatements and directly caused investor losses. This complaint is built around that chain.

Litigation and Procedural Posture

The action was filed on April 24, 2026 in the Southern District of New York by Ohio Carpenters’ Pension Fund on behalf of investors who purchased or acquired Globant common stock between February 15, 2024 and August 14, 2025.

The defendants are Globant, CEO Martin Migoya, CFO Juan Ignacio Urthiague, and former COO Patricia Pomies. Plaintiffs allege violations of Section 10(b) and Rule 10b-5 for materially false and misleading statements, along with Section 20(a) control person claims against the individual executives.

The complaint alleges scienter based on executive access to internal operations, control over SEC filings and earnings communications, and knowledge of worsening operational conditions that were allegedly concealed from the market.

Plaintiffs contend the executives knew, or recklessly disregarded, the alleged problems because of their senior roles, control over public communications, and alleged access to information about Latin American operations.

The complaint does not center on insider stock sales. Instead, scienter is framed around operational visibility and repeated public contradictions.

The case is now in its early pleading stage. Lead plaintiff proceedings and an eventual motion to dismiss will likely define the next major milestone.

SEC Filings & Employee-Retention Statements

The February 29, 2024 Form 20-F plays an important role in the complaint. There, Globant stated that expanding its “global delivery footprint” and accessing deeper talent pools were key strategic priorities. It also told investors that employee retention was critical because “People are one of our most valuable assets.”

The filing further stated: “Employee retention is one of our main priorities and a key driver of operational efficiency and productivity.”

Plaintiffs argue those statements were misleading because the company had already frozen wages in Argentina and Mexico, allegedly undermining retention and creating widespread employee dissatisfaction.

Similarly, executives repeatedly discussed currency depreciation in Argentina and framed it largely as a manageable contract issue or even a margin benefit. Plaintiffs argue those discussions omitted the more damaging operational consequence: frozen wages in high-inflation markets that effectively reduced employee compensation and destabilized local operations.

This is often where securities cases live, not only in what a company disclosed, but in whether its public statements allegedly omitted conditions plaintiffs claim were already affecting the business.

How to Join the Globant (GLOB) Class Action

• Confirm you purchased GLOB shares during the February 15, 2024 to August 14, 2025 class period
• Review eligibility details and transaction history
• Click here to check eligibility

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.