SAN FRANCISCO, March 13, 2026 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been filed against Navan, Inc. ( NAVN ) , its IPO underwriters, and certain executives after the company’s December 15, 2025 announcement of Q3 2026 quarterly financial results for the quarter ended October 31, 2025. Among other matters, investors learned that Navan incurred a huge sequential increase in sales and marketing expenses.

Of concern was that the quarter end coincided with Navan’s IPO closing, whereby the company and certain selling stockholders sold about 36.9 million shares at $25 per share to the investing public.

Navan also announced the surprise departure of its CFO (Amy Butte) effective January 9, 2026.

The markets swiftly reacted, sending the price of Navan shares down nearly 12% to close at $12.90, or about 48% below the IPO price, on December 16. By the time the complaint was filed on February 23, 2026, the price of Navan shares closed at $9.16, or 63% below the IPO price.

The developments and severe market reactions have prompted national shareholder rights law firm Hagens Berman to investigate the legal claims that Navan and the other defendants violated the federal securities laws. The firm urges Navan investors who suffered significant losses to contact the firm now to discuss their rights.

Navan, Inc. ( NAVN ) Securities Class Action: 

The litigation challenges Navan’s alleged omissions from its IPO offering documents, including adverse, then-existing trends in sales and marketing expenses.

The complaint alleges that Navan’s IPO offering documents offered a picture of potential growth by emphasizing that its business “experienced rapid growth,” and its solutions catered to “customers of all sizes across any industry vertical.” The IPO documents stated Navan’s revenue “grew 33% year-over-year” from 2024 to 2025, its gross booking volume (“GBV”) “grew 32% year-over-year” during the same timeframe, and its “usage yield” was “approximately 7%” in each of those years as well.

But, when on December 15, 2025, Navan unexpectedly reported a 39% sequential spike in its sales and marketing expenses during the IPO-coincident quarter ended October 31, 2025, slowing year-over-year revenue growth, and a fourfold year-over-year increase in its GAAP net loss, questions arose about the sufficiency of Navan’s disclosures, including those related to its Q3 expense trends, while conducting its IPO.

The complaint alleges that Navan’s and the other defendants’ statements and omissions during the IPO misled investors because crucial information – including the spike in sales and marketing expenses – was not included in the company’s offering documents.

“We’re investigating whether, at the time of its IPO, Navan was legally transparent about apparently known, materially adverse trends in its business. We’re also investigating the circumstances surrounding the CFO’s abrupt departure,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Navan and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to additional frequently asked questions about the case and the firm’s Navan investigation, read more »

Whistleblowers: Persons with non-public information regarding Navan should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:

Reed Kathrein, 844-916-0895

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Source: Hagens Berman Sobol Shapiro LLP