Globant Faces Latin America Securities Fraud Lawsuits
Analysis based on 131 articles · First reported Apr 27, 2026 · Last updated Jun 18, 2026
The market has been significantly impacted by the alleged securities fraud by Globant, leading to a steep decline in its stock price. Investors who purchased Globant securities during the Class Period suffered damages, prompting multiple law firms to file class action lawsuits seeking to recover these losses. The negative sentiment surrounding Globant's Latin American operations and financial performance has eroded investor confidence.
Multiple law firms, including Bronstein, Gewirtz & Grossman, LLP, Faruqi & Faruqi, Glancy Prongay & Murray, Rosen Law Firm, The Schall Law Firm, DJS Law Group, The Law Offices of Frank R. Cruz, and The Gross Law Firm, have filed or are investigating class action lawsuits against Globant. These lawsuits allege that Globant made materially false and misleading statements regarding its 'Latin American pivot' strategy between February 15, 2024, and August 14, 2025. The complaints claim that Globant's Latin American operations were experiencing declining demand, client defections, and project cancellations, contrary to the company's positive statements. Furthermore, it is alleged that Globant froze employee wages in Mexico and Argentina, leading to widespread employee turmoil and degraded client services. These undisclosed issues led to significant drops in Globant's stock price following financial results announcements in February, May, and August 2025, where the company missed guidance, reported declining Latin American revenue, and announced a headcount reduction of approximately 1,000 employees with a $47.6 million restructuring charge.
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